Warning: include() [function.include]: URL file-access is disabled in the server configuration in E:\inetpub\vhosts\magtheweekly.com\httpdocs\12\focus.php on line 73

Warning: include(http://www.magtheweekly.com/skymidpage.php) [function.include]: failed to open stream: no suitable wrapper could be found in E:\inetpub\vhosts\magtheweekly.com\httpdocs\12\focus.php on line 73

Warning: include() [function.include]: Failed opening 'http://www.magtheweekly.com/skymidpage.php' for inclusion (include_path='.;./includes;./pear') in E:\inetpub\vhosts\magtheweekly.com\httpdocs\12\focus.php on line 73
Tax-free Budget was presented and passed, the house unanimously approved the Surplus Budget, no objection was raised and all the members of the assembly okayed the Masses-Friendly Budget. Such were the headlines in the electronic and print media during the last fifteen days when National Assembly, all the four provincial assemblies, city and district governments and other autonomous bodies presented and approved their budgets. These news items gave the impression that Pakistan is a booming country and there is prosperity everywhere. But it is the charisma of the Pakistani government that through its budgets it

gives a message to the entire world that the rivers of milk are flowing in the country, people are satisfied and the government needs no taxes and revenue as the national and provincial treasuries are full of money. But suddenly after and during the passage of budget, the government and all its allied institutions and bodies start dropping bombs of expenses on the poor masses. The government announces withdrawal of subsidy it pays on different items and services to lessen the burden of the masses. With the withdrawal of the subsidies, the entire encumbrance is to be borne by the masses. This year too, the story remained the same. Prices of neither any item nor any service were enhanced in the budget but immediately after the announcement of budget, prices of petroleum products, CNG, electricity and natural gas went high. With the increased price of oil, the prices of all the other items of everyday life have gone up automatically as the business community attaches the prices of various products with the rates of petroleum products. Transport fares of buses, wagons, taxis, rickshaws, etc. have also gone up officially or unofficially.
The notification to enhance the rates of petroleum products was issued on 28th June instead of 30th as a normal practice (at the end of the fortnight). Hence if the consumers are badly affected with this decision on one hand, the petroleum companies and petrol pump owners, on the other hand, made millions of additional profit in just two days as there was a lot of oil in their stock. It is a tradition for the last many years that the oil prices are revised (read increased) on 1st and 16th of every month but since the same powers are conferred to OGRA (Oil and Gas Regulatory Authority), it is for the first time that the prices were increased two days earlier.

With the recent announcement, the prices of petrol are increased by Rs. 6.88 per liter, high speed diesel by Rs. 5.01 and of kerosene oil Rs. 11.48 per liter. The raise on petrol and diesel is 10 percent whereas on kerosene oil is 30 percent which is a great injustice to the poor masses. This is an undeniable fact that there is a rapid trend in the increase of oil prices in international market. The organisation of oil producing countries (OPAC), in its meeting held last month, failed to bring the prices down. On the other hand, US President George Bush has personally requested the rulers of Saudi Arabia to play their role in this regard. Although Saudi Arabia has increased the daily oil production but the prices in international market crossed US$ 142 per barrel last week resulting in a crash in the stock markets of the USA. To reduce the oil prices in international market, another meeting of OPAC is in the offing but the forecast is that this meeting would also be in vain.
Like other countries of the world, Pakistani government too, is suffering from the same situation and it was compelled to enhance the rates of the petroleum products but this time the raise was a record which would definitely devastate the economy of the country especially the middle class. For a common man, earning bread for his family is already an arduous job whereas the increase in the prices of petroleum products will multiply their agonies. The government has, conveniently, put the entire burden on the masses. No doubt, the government is facing a revenue shortfall but it is the responsibility of the economic managers to find out other avenues to counter the shortfall.
In the elections of 18th February if the masses had given a mandate to the political parties, they hoped something would definitely be done to bring prosperity in their lives but, irrespective of government’s impediments and obstructions, when the prices are increased, a wave of depression and disappointment among the masses has also increased. This wave can result in a dreadful outcome. If the price of something goes up in international market, it is beyond the control of any government. But the government can however, provide relief to its people, by reducing its expenses. Instead of shifting the entire burden on the masses, steps should be taken to make life easy for the common man for which there has to be positive interaction between government and people.
The masses are already distressed by the inflation. Load shedding has made their life miserable and after paying utility bills, meeting other domestic needs has become impossible for them. The number of those living under the line of poverty is increasing day by day. In our neighbouring country India, too, the prices of oil were increased but before doing so, the masses were mentally prepared while all along the higher ups had meetings trying to avoid the unavoidable. And so, when the prices were increased, no violent reaction from the masses was seen. As compared to Pakistan’s economy, Indian economy is more stable and their middle class citizens are strong enough to bear such shocks. In Pakistan, the situation is quite different. The purchasing power of the middle class is falling with every passing day. Although the salaries of government servants are increased in almost every budget but if this raise is compared to the inflation, it’s no raise really.
The country is already in the grip of diesel crisis and the increasing oil prices are going to give birth to new problems. Presently, due to load shedding, diesel generators have been installed in homes, offices, markets, shopping plazas, factories, cinema houses, etc. in abundance. This means more diesel is required. Due to auto loans of leasing companies and banks, purchasing a car has become very easy for a middle class man. This has resulted in demand for petrol and CNG. As thousands of cars and other vehicles are coming on the road, they are consuming huge quantities of fuel daily. The demand of fuel will grow in the coming days. To meet the future requirements, additional petrol and diesel is needed for which more foreign exchange would be spent. It would be an extra burden on the national economy.
Considering this situation, a joint effort has to be made by the government and masses to make life easy for them. The government should find ways and resources to recover the shortfall in the revenues. The expenses of resources should be controlled where they are being abused. Elimination of load shedding and the improvement of public transport can minimise the use of oil. The masses should also behave like responsible citizens. Power theft especially for using more and more air conditioners should be avoided. The nation should adopt the habit of saving energy and energy reserves. If both the parties realise their responsibilities, there is no reason that load shedding and inflation cannot be controlled.