PRIME Minister Muhammad Shehbaz Sharif’s announcement on Tuesday that the government would not pass on the benefit of reduced international oil prices to the public and would instead divert the saved funds towards the reconstruction of the N-25 Highway and completion of Phase-II of the Kachhi Canal project in Balochistan has come as a disappointment to many, especially at a time when people were expecting relief in petroleum prices.
There is no doubt that the development of Balochistan should be among the government’s top priorities.
In these columns, we have time and again emphasized that uplifting this long-neglected province is not only a matter of national duty but also the most viable path to addressing the grievances of the Baloch people.
Development in Balochistan is essential for unlocking the true potential of this resource-rich province.
That said, the government’s approach to fund this development by withholding the benefit of falling oil prices from the public is a questionable one.
It is important to remember that both Balochistan and Khyber Pakhtunkhwa have been receiving increased allocations under National Finance Commission (NFC) Award.
The natural question that arises is: where are those funds going?
If more resources are needed for essential infrastructure, the appropriate route would have been to prioritize them under the PSDP, rather than burdening the public.
Reducing petroleum prices would have had a wide-ranging, positive impact across the country including in Balochistan.
Lower fuel prices ease the transportation costs of goods, which in turn help bring down the prices of essential commodities.
Additionally, under the fuel price adjustment mechanism, lower oil prices directly contribute to a reduction in electricity tariffs, benefiting households and businesses alike.
In short, the relief would have been felt not just in urban centres, but also in remote and rural areas — including Balochistan.
Therefore, this decision by the government seems like a missed opportunity to provide collective economic relief.
We urge the government to reconsider this decision.
If not the full benefit, at least a portion — say, half — of the relief from declining international petroleum prices should be passed on to the consumers.
This would strike a more balanced approach: providing necessary public relief while still allocating funds for critical infrastructure projects.
