AS the prices of petroleum products were touching new heights and at present hovering around $ 115 per barrel, the government took a very tough decision of not only reducing their prices by ten rupees per litre but also that of electricity tariff by Rs 5 per unit, besides capping them for the next four months.
Addressing a news conference on Wednesday, Finance Minister Shaukat Tarin stated that a monthly subsidy of Rs 106 billion is being provided on petroleum products whilst the subsidy on electricity tariff for the next four months will touch Rs 136 billion.
Given the current political situation in the country, many will consider this move a political decision to calm the nerves of the people but the fact is that the ultimate beneficiary of this decision will be the masses.
By not reducing petroleum levy and sales tax, the government could easily post massive growth in tax collection but it preferred taking this revenue hit to provide relief to the people, which definitely should be recognized and appreciated.
In extraordinary situation as it is now in the international market, it becomes responsibility of the government to come forward and take such steps which protect its people from price hike.
Now onus is also on the government to ensure that the benefit of this relief also reaches the common man.
Despite reduction in petroleum prices, the public transporters continue to fleece and charge high fares from commuters.
The concerned authorities must come into action and ensure that the official fare list is implemented in letter and spirit.Similarly, the prices of essential commodities should also come down.
The very relief packages announced for the industries and the IT sectors are step in the right direction as only through this we can generate economic activity in the country which will create job opportunities for the people as well as increase their income levels.
The consistency in policies is a must to attract the foreign direct investment in these vital sectors and avoid brain drain who leave for other destinations when find no opportunities at home.
