Rising carbon price is essential to 'decarbonize' the economy Crisis deepens on Pakistan
-Abhipsha Sarkar
Spanning the western expanse of the Indian subcontinent and the eastern borders of the Iranian plateau, the region of present-day Pakistan served both as the fertile ground of a major civilization and as the gateway of South Asia to Central Asia and the Near East. In the first half of the 19th century, the region was appropriated by the East India Company, followed, after 1857, by 90 years of direct British rule, and ending with the creation of Pakistan in 1947, through the efforts, among others, of its future national poet Allama Iqbal and its founder, Muhammad Ali Jinnah.
Pakistan (Officially Islamic Republic Of Pakistan) was formed out of Punjab, Afghania (Khyber Pakhtunkhwa), Kashmir, Sindh, BaluchisTan. Pakistan also witnessed different phases of movement, formation of Muslim League, claiming the state as an independent Muslim state with the concept of self government against the Indian supremacy under the British Rule, rioting between india led to the partition based on religious lines giving every muslims its own supremacy as an ISLAMIC STATE.
Being a republic, it is executed and headed by the Prime Minister himself under the national cabinet on date upon the various pillars of govt. but initially it was semi presidential to parliamentary since 2016. Arif Alvi is the current president since 2018. Pakistan is a multiparty democracy with several political parties actively engage. This bicameral legislature consists of two house upper (Senate) and lower (National Assembly).
Pakistan also joined NAM and a part of CENTO and SEATO, one of the muslin territory to be have an international relations with the Republic Of China. On 2020, a new political map of Pakistan was created with the Prime Minister Imran Khan , which gave the right of Kashmiris either to join with india or with Pakistan.
Pakistan is with semi developing economy which include textiles, leather goods, sports equipment, chemicals and many more. With improvement in ease of doing business ranking and giving an investment friendly road map from government, many new auto sector giants like France's Renault, South Korean's Hyundai and Kia, Chinese JW Forland and German auto giant Volkswagen are considering entry in Pakistan auto market through joint ventures with local manufacturers like Dewan Farooque Motors, Khalid Mushtaq Motors and United Motors as of 2022 with 25% shares in offshore drilling. Major sectors comprises of agriculture, Mining, Industry, service sector, Telecommunication, transportation, Finance, Housing, Energy and the foreign trade and its remittance aid from other countries.
Pakistan is one of the largest manufacturers and exporters of surgical instruments.
Suddenly, Pakistan popped up on everyones notification with the issue of price hiking of products.
Pakistans Coalition govt led by Muslim League-Nawaz (PML-N) leaders have remained tight-lipped about the major decisions taken at the meetings. However, the meeting told media that the PML-N faced a tough choice, either to increase fuel prices or to pass the reins to an interim set-up. There are many in the party who agreed that increasing fuel prices is the only way but Nawaz Sharif opposed to it.
Pakistan government announced the price hike of all petroleum products by Indian Rupee 30 per litre, 59PKR, effective by midnight of June 3, 2022. Finance Minister Miftah Ismail, announced that the IMF in Qatar has failed to reach on an economic bailout. Adding to that he said that the nation would have gone in the wrong direction to have remained stable. He said it has become indispensable to shift the fuel price burden on the masses as the IMF had refused to give any relief until the fuel subsidy was removed. Following the price hike, petrol price in Pakistan is now PKR 179.85, diesel is PKR 174.15, kerosene PKR 155.95 and light diesel is PKR 148.41. Protest have broken out on the streets of Pakistan with the increase of petrol by 17% by the second week thereby attacking the petrol pumps in cities like Karachi angrily. Not only this, the infuriated Pakistanis pelted stones and vandalized the pump and this was further elevated after the petrol pump stopped supplying the fuel.
Former Pakistan Prime Minister Imran Khan slammed the Shehbaz Sharif government for hiking petrol prices by 30 Pakistan rupees (PKR) per litre while praising India for reducing fuel prices. The former Pak PM said, India was able to reduce fuel prices as it was buying cheaper oil from Russia.
It is second consecutive increase in a week as the country increased the prices Rs60 per litre on all petroleum products. The changed price hike is petrol Rs. 209.86, diesel Rs.204.15, light diesel Rs.178.31 and kerosene Rs.181.94. With this increase, the finance minister said that despite we are still facing a loss in the commodities by Rs.8 on light diesel, Rs.9 on petrol and Rs.23 on diesel but no loss on kerosene.
Pakistan increases petrol price for third time in 20 days, increased by upto 29% thereby eliminating fuel subsidies in the country. The Government has increased the price of petrol by more than Rs 84 per litre in the past 20 days. Explaining the reasons for another hike in the prices of petroleum products, the minister said that the international price of petrol was USD 120 per litre.
This third wave will be effective from the midnight of June 15, 2022. The petrol price hiked by Rs 24 per litre in a day. Now, one litre of petrol in Pakistan costs Rs 233.89 from Rs 209.86, Rs 16.3 hike on diesel price stood at Rs 263.31 from Rs 204.15, the price of kerosene by Rs 29.49 to Rs 211.43.
Mr Ismail said the decision of such a price hike was not easy for any finance minister but had become inevitable because of the unreasonable decision of the previous government to increase prices for months. He also hoped that the exchange rate would now improve, markets would stabilise, the economy would balance and the investor would make difficult decisions. He also blamed the Imran Khan government for making a faulty agreement with the IMF to increase oil prices for the betterment of the economy, admitting that the middle class would suffer from the petrol price hike.
He acknowledged that lower-income segment of the society will be greatly impacted as a result of the increase in the petroleum prices, but noted that rate of crude oil has also sky-rocketed in the international market. The new Petrol Prices in Pakistan will take effect from 3 June 2022.
However, the Pakistan Government has announced a Relief Package for increasing the Petrol Prices, will provide Rs. 2,000 stipend to the poor through Benazir Income Support Program (BISP). Prime Minister Shehbaz Sharif added the programme would provide relief to 14 million families across Pakistan.
The IMF wants Pakistan to take strict measures to control its fiscal deficit in the face of a balance-of-payments crisis.
In a move to curb the rising prices of food items, Pakistan has requested its citizens to minimise the usage of tea. Pakistan has to import tea from outside and if people reduce the consumption of tea, then it will help in reducing the import expenditure of the government.
