The Finance Ministry of Pakistan has warned the public that the exchange rate, commodity supplies, and seasonality could increase the prices and transportation costs in the country, reports Dawn.
The fiscal deficit in July-August was recorded at 0.9 per cent of the Gross Domestic Product (GDP), same as the previous year.
Economic Adviser’s Wing of the Ministry of Finance in its monthly Economic Update & Outlook states, “The effect of these impulses — surge in international oil prices, exchange rate depreciation and adjustments in administered prices — may intensify the magnitude of prices and transportation cost.”
The ministry said the country had seen some improvement in economic activities but an unprecedented increase in international commodity prices was putting pressure on domestic prices as well as on the local currency. However, the government’s pro-growth initiative along with efficient monitoring of prices is expected to provide relief to the general public.
The ministry further explained that the country’s inflation rate was mainly driven by monetary and supply-side factors, including domestic and international commodity prices, dollar exchange rate, seasonal factors.
Earlier, it was reported that inflation in Pakistan has broken a 70-year record in the last three years, with food prices doubling, while the prices of ghee, oil, sugar, flour, and poultry have reached historic levels.
A couple of weeks ago, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin said that things are becoming more expensive all over the world and the reasons are unknown.
According to the quarterly survey by Pulse Consultants, almost six out of 10 people have no confidence in Prime Minister (PM) Imran Khan’s claim of coming out of the economic crisis, reports The News.
The survey is based on 1,809 respondents’ opinions who were interviewed from October 04, 2021 to October 10, 2021. It covered 60+ cities from all provinces of Pakistan.
According to the survey, the number of people losing faith in PM’s economic policies is around 57 per cent coupled with a drop in those who were confident that the prime minister will be able to turn the tide.
In July, 17 per cent respondents expressed confidence in PM’s policies, which in the current survey has dropped to seven percent. Regarding questions about the direction of the economic policies, 56 per cent respondents in July found them to be in the wrong direction, but three months later it has risen by 19 per cent to 77 per cent. On the contrary, those perceiving them to be on the right track have dropped to 24 per cent from 43 per cent in July.
Anxiety about the wrong direction is high is in the main political battleground provinces Punjab (79 percent) and Sindh (73 percent), as per the survey.
Since November 19, 2018 more than 95 per cent believe that inflation has increased after every three months.
Furthermore, the survey states that 68 per cent of people do not have savings and most of them have reduced their expenditures to make ends meet.
When the respondents were asked about the country’s major concern, 77 per cent complained about inflation whereas 35 per cent found corruption, 25 per cent unemployment, 11 per cent load shedding, while 10 per cent termed inability to meet expenses as their biggest problem.
The Pulse Consultant also asked the respondents about the performance of PM’s Adviser on Finance and Revenues, Shaukat Tarin, which showed that 53 per cent were dissatisfied with him.
The survey was conducted through CATI (Computer assisted telephonic interviews), a state-of-the-art technology where all calls are recorded.
The country is Heading Towards Wrong Economical Direction
Three amongst four Pakistanis believe that country is heading towards a wrong economic direction
In July 2021 there were 56% have that opinion but in October 2021 with an increase of 19%, 75% have that opinion
Anxiety about the wrong direction is high in Punjab (79%) & Sindh (73%) – the main political battleground followed by KP – PTI’s hometown (67%)
PM Claim About Restoration of Country Economic Outlook
In July 2021, 6 out of 10 respondents (62%) had overall belief on PM IK’s claim that “country is out of economic crisis”
Now in October 2021, wave condition is vice versa – almost 6 out of 10 (57%) have opposite opinion and have no belief in PM IK’s narrative (In July 38% had no believe now by the increase of 19% -57% have no belief)
Satisfaction with Shaukat Tarin
Dissatisfaction increased 15% (from 38% to 53%)
Satisfaction decreased 22% (from 35% to just 13%)
Inflation Trend
Almost every Pakistani hit by inflation and 98% are reporting that ‘Inflation increased in past three months’
Price Hike – Major Cause of Dissatisfaction
Like previous wave, in July Y2021 ‘Inflation’ is once again ranked as the gravest issue by (with the increase of 5%) 77% of the respondents.
If we read it with the answer “Expenses Not Meet” (اخراجات پورے نہیں ہوتے),of 10% – then it will reach to 87% – Ever highest in past three years
This is followed by & ‘Corruption’ (35%) & ‘Unemployment’ (25%), in this wave ‘Corruption’ – overtake the ‘Unemployment’
Expenses
We asked the same questions about “Monthly Expenses Management” back in July 2020, in July 2020, 41% had the opinion that – their monthly expenses are according to their income – but with the decline of 9% , now 32% have the same opinion
Jul-20 Oct-21Monthly Expenses Meet 41% 32%
Monthly Expenses Not Meet 59% 68%
Punjab & KPK – where #PTI is holding the provincial Govt. unrest increase significantly – specially in KP
If we compare the results of July 2020 & October 2021 (after 13 months) – Upper Socio Economic Class is also complaining that their monthly expenses are not meeting
Those who claimed that – their monthly income meet expenses – 31% amongst them claimed that they save any money
On the other hand – those who complained that their household expenses are not meet – 37% amongst them reduced their expenses, 30% borrow money and 30% do some extra job/work other than regular
Members of the Awami Rickshaw Drivers Union organised a protest against the increase in fuel prices in Lahore, Samaa has reported. The protesters threatened the government to hold an indefinite sit-in if the government did not lower gasoline and natural gas rates.
Chairman of the Rickshaw Union, Majeed Ghori, stated that if the government does not reduce fuel prices in the next 24 hours, they will hold sit-ins at city’s busiest junctions, disrupting traffic. He also warned that they would protest outside the Chief Minister House.
The federal government has issued a notice to increase the price of petrol by Rs10.49 per litre. Apart from this, the price of high speed diesel (HSD) has been increased by Rs12.44 per litre.
The prices of kerosene and light diesel oil (LDO) have been increased by Rs10.95 and Rs8.84 per litre respectively. The new price of kerosene is Rs110.26 per litre and that of LDO is Rs108.35 per litre.
The Oil & Gas Regulatory Authority (Ogra) has sent a summary to Prime Minister Imran Khan for the approval to increase the price of petrol by Rs5.90 per litre, Geo News has reported. The petrol prices are likely to be increased on October 16, 2021 as per sources of Geo News.
If approved, The petrol prices can reach up to Rs133.2. In addition, Ogra has recommenced an increase in high-speed diesel price by Rs10.
In early October, the government had increased the price of petrol by Rs4 per litre taking its price to a record level of Rs127.30 per litre.
The government on Thursday, increased the price of petrol by Rs 4 per litre and that of high-speed diesel (HSD) by Rs 2 per litre.
The prices of kerosene oil and light diesel oil (LDO) were increased by Rs 7.05 and Rs 8.82 per litre, respectively.
From Oct 1, the price of petrol will be Rs 127.30 per litre, high-speed diesel will be Rs 122.04 per litre, kerosene oil will be Rs 99.31 and light diesel oil will be Rs 99.51 per litre.
Social media users did not lose the opportunity to start a meme fest following the news.
Twitterati reacted to the hike in petroleum prices in Pakistan, using the hashtag #PTIPetrolBomb, which is currently in the top trends.
Musician and politician Jawad Ahmad tweeted: ”Petrol price is up by Rs 5/litre.It won’t affect the elite & ruling class whichever party they belong to. Youth of Pakistan! These people have so much money that their next many generations would live comfortably with it. They fight on TV & social media but actually, they’re all one.”
Petrol price is up by Rs 5/litre.It won’t affect elite & ruling class whichever party they belong to.
Youth of Pakistan!These people have so much money that their next many generations would live comfortably with it.
They fight on TV & social media but actually they’re all one.
Former anchorperson Gulmeenay tweeted, “My husband and I run a small food delivery service. We cannot currently afford a rider so he does the deliveries himself. This petrol price increase (and all the previous increases) literally impacts our income and our ability to pay bills and feed ourselves.”
My husband and I run a small food delivery service. We cannot currently afford a rider so he does the deliveries himself. This petrol price increase (and all the previous increases) literally impacts our income and our ability to pay bills and feed ourselves. https://t.co/JDTs35tZ0n
Apart from this, some people had hilarious responses to the petrol price hike.
Senior journalist Mansoor Ali Khan quote-tweeted Punjab Police’s tweet about abandoned cars picture and said, “As petrol becomes more expensive, you will find most cars have been abandoned.”
جس طرح پیٹرول مہنگا ہو رہا ہے، اکثر گاڑیاں اب آپ کو لاوارث ہی ملیں گی۔ https://t.co/sF7jkBhF2b
Minister for Information and Broadcasting Fawad Chaudhry, while responding to a journalist on Twitter, has defended the hike in petroleum prices by the government.
“Oil prices in Pakistan are still the lowest in the region. If we had oil wells, things would have been different but we have to buy it from abroad, so the price is bound to go up if it increases in the oil market. This is the case for the rest of the imports. The real achievement is that the income of 75 per cent of the population has also increased significantly,” tweeted Chaudhry.
پاکستان میں تیل کی قیمتیں اب بھی ریجن میں سب سےکم ہیں، یا تو تین سالوں میں تیل کے کنوئیں نکل آتے ورنہ ظاہر ہے جب آپ نے تیل باہر سے خریدنا ہے تو قیمت بڑھے گی تو قیمتیں بڑھیں گی، یہی اصول باقی درآمدات کیلئے ہے۔اصل کامیابی یہ ہےکہ75 فیصد آبادی کی آمدنی میں بھی خاطر خواہ اضافہ ہوا ہے https://t.co/vfggD1xaFx
District government Lahore placed banners in petrol stations across the city saying that only fully vaccinated people will be able to get the petrol from September 1. The decision came amid the sharp increase of Covid-19 cases in the country.
“From September 1, only customers with coronavirus vaccine certificates will be able to buy petrol,” a banner placed on a petrol pump read.
Earlier this week, Federal Minister for Planning Asad Umar has said those who have not been fully vaccinated will not be allowed to use public transport from October 15.
As per the National Command and Operation Centre (NCOC), Pakistan has recorded 4,016 new cases of coronavirus in the last 24 hours.
Statistics 27 Aug 21: Total Tests in Last 24 Hours: 62,496 Positive Cases: 4016 Positivity % : 6.42% Deaths : 95
Prime Minister Imran Khan’s aide on political communication, Dr Shahbaz Gill, announced that the government has raised the price of petrol by Rs1.71 per litre, starting August 1.
According to Gill, the decision was made as per the recommendation of the Oil and Gas Regulatory Authority (OGRA). Petrol will consequently cost Rs119.80 per litre.
26 جولائی کے ڈیٹا کے مطابق دنیا میں 27 ممالک میں پٹرول کی قیمت پاکستان سے کم اور 140 ممالک میں پاکستان سے زیادہ ہے
دنیا میں پٹرول کی اوسط قیمت 1.19 ڈالر فی لٹر لیکن پاکستان میں پٹرول کی قیمت 0.72 ڈالر فی لٹر ہے
دنیا میں پٹرولیم مصنوعات میں اضافہ 47% ہوا لیکن پاکستان میں 11%ہوا
Gill said that it was decided that the rate of high-speed diesel be kept constant, as a hike in this commodity impacts the “common man and farmers more”. Thus, diesel will continue to be priced at Rs117.53 per litre.
Similarly, no change has been made to the price of light diesel oil.
Meanwhile, Kerosene, starting August 1, will cost Rs0.35 dearer, at Rs85.75 per litre.
It was rumoured that OGRA recommended a Rs1.71 per litre increase in the price of petrol and a Rs2.27 per litre increase in the price of diesel.
Gill asked the nation to “bear in mind” that the majority of the 27 countries that have petrol prices lower than the rate in Pakistan are “self-sufficient in petroleum products”.
یاد رہے کہ جن 27 ممالک میں قیمتیں پاکستان سے کم ہے ان میں سے زیادہ تر ممالک اپنی پٹرولیم مصنوعات میں خود کفیل ہیں- اس وقت پٹرولیم پراڈکٹس پر حکومت پاکستان تقریباً صفر کے قریب ٹیکس وصول کر رہی ہے۔ کرونا کی وجہ سے پوری دنیا مہنگائی کی زد میں ہیں۔
“At this time, the government is collecting a nearly zero per cent tax on petroleum products,” Gill said, adding: “Right now, the whole world is in the grip of inflation due to corona.”
The government has approved a hike of Rs2.31 and Rs1.80 in the prices of petrol and diesel, respectively, for the month January, while the price of the Liquified Petroleum Gas (LPG) has also been increased by Rs16 per kg.
“While considering relief for the people, Prime Minister Imran Khan approved the minimum possible increase in prices of petroleum products against OGRA’s [Oil and Gas Regulatory Authority] recommendations,” a Prime Minister’s Office (PMO) press release said.
OGRA had sought an increase of Rs10.68 in petrol price and Rs8.37 in diesel price, whereas it asked the government to increase the price of kerosene oil by Rs10.92 and light diesel oil (LDO) by Rs14.87; the government however reduced it by Rs3.36 and Rs3.95, respectively.
Meanwhile, OGRA notified a hike of Rs16 per kilogramme in the prices of Liquefied Petroleum Gas (LPG), effective from today, which comes as another blow for the public already facing high inflation.
According to OGRA’s notification, the LPG prices are raised by Rs16/kg. With the increase, the LPG cylinder for domestic users will be up by Rs188 and commercial users by Rs722.
It may be noted here that the consumers are already facing a shortage of gas nationwide and have to rely on LPG cylinders instead.
