The government’s decision to keep the price of oil unchanged is a political move in the context of the current political situation in the country, which contradicts the ground realities, said Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain.
He said complete elimination of oil, gas and electricity subsidies is necessary to save the country.
Mian Zahid Hussain said that delaying unavoidable decisions is hurting the economy.
He said that if the price of oil is to be maintained then why time is being wasted by starting a new round of negotiations with the IMF on 18th May. He said that it was necessary for the government to cut development and non-development expenditure, privatize the failed government agencies while tax measures including reversal of several billion rupees of exemptions were also required to increase revenue without which the IMF would not be satisfied.
Mian Zahid Hussain further said that in the present situation the government would not be able to take needed loans from commercial banks for a long time and if the troubled commercial banks refused to give more loans then economic catastrophe would be unavoidable.
Elimination of oil, gas and electricity subsidies would increase inflation but if action was delayed, the economy would go bankrupt and inflation would skyrocket while the country would fall victim to unrest and civil war.