Major decrease in fuel prices receives positive response
Published on: October 16, 2023.
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The Winds of Change in Pakistan’s Business Landscape
The esteemed leader of the National Business Group Pakistan, former provincial minister, and current President of Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain, declared on Monday that a significant drop in petrol prices is a welcome change, poised to bring tangible relief to Pakistan’s population. He noted that in two weeks, petrol prices would have been reduced for the second time, a move that echoes favourably with all citizens.
Mr. Hussain explained that the primary reason for this relief is an international decrease in oil prices and an increase in the value of the Pakistani Rupee. He further communicated to the business community that if the US dollar continues to drop, the Pakistan government will be in an excellent position to deliver even more relief to its people.
The sage business leader called attention to the steep drop in petrol prices, by 40 Rupees per litre, and a reduction of high-speed diesel by 15 rupees per liter. He accentuated, though, that while a reduction in diesel price would provide significant relief, it was unlikely due to the government’s need to meet budget targets and honor the agreement it has with the IMF, which requires them to raise Rs 869 billion from a petroleum levy this year.
In his address, Mian Zahid Hussain mentioned that lower petrol prices would reduce the travel cost of cars and motorcycles, making taxi and rickshaw rides more affordable. However, the impact of diesel price reductions would be less notable given its predominant use in heavy-duty vehicles like trucks, buses, railways, and agriculture equipment.
Mr. Hussain also conveyed other encouraging news for the national economy, including improvements in cotton production with an anticipated production of 12 million bales this year, an enhancement in wheat production by 12%, and a resurgence in the auto industry. He shared that the banking sector was posting substantial profits, remittances were increasing, and that he anticipated rice exports to exceed a staggering three billion dollars this year.
He emphasised that these successes were just the beginning; the government was planning to discourage illegal profiteering, penalising electricity thefts, and implementing strict measures to prevent unfair trade in commodities and vegetables. The most commendable news, however, was regarding privatisation plans which could significantly alleviate Pakistan’s economic challenges.
In closing, he encouraged Pakistanis to remain hopeful and appreciated the tireless efforts of the government and related entities in stabilising Pakistan’s economy and reshaping the nation’s future.
