The PTI has upped the ante once again and mounting pressure on the existing government. With huge increases in oil prices the overall economy is slumping as the business community braces for the worse. The evolving situation in the economic and political landscape is scary to say the least.
We are a nuclear power. How much deterrent is enough? How much do we spend on tactical nuclear weapons? Why? Why do we need such a large infantry/artillery if we are reduced to begging peace from the TTP? What is ISI's budget? We need an open and informed debate.
— Yousuf Nazar (@YousufNazar) June 3, 2022
With the new budget right around the corner, fund allocations to different government intuitions is again up for debate. Regardless of how this happens and what factors are considered, one thing is for certain that if we continue to progress the way we’re doing there will be no change.
Loophole resulting in revenue loss of PKR 25bn on petroleum import from China is now closed.
If anything, @AribaShahid needs to be credited for investigating this, and taking this forward, eventually enhancing rev. by PKR 25bn+ for national exchequer.
— Ammar Khan (@rogueonomist) June 4, 2022
The issue of OMC’s importing fuel from China to avoid paying the regulated 10% customs duty was first highlighted by Profit’s very own @ Ariba . This prompted the government to take decisive action ensuring fair trade as well as recover additional revenues north of Rs 25 billion.
So a lot of people asked me about peak inflation. I’ll give that vital number for Pakistan. 30%+ in July onwards. Energy is anticipated to be raised by PKR 100 by June 30th 2022 in increments to meet IMF debt terms. That will result in 30%+ inflation (conservatively).
— Faisal Aftab (@faisal_aftab) May 30, 2022
As fuel prices increase the country is heading towards troubled waters. Although it was a necessary step, that does not make it any less painful for the masses and business alike. Fuel prices have a direct price impact on almost everything we consume, and therefore an increase in prices will have a domino effect on all the other goods and services. Faisal Aftab
Historic day in struggle of civilian supremacy, PM @CMShehbaz surrendered all appointments/posting/promotions of civilian officers/public office holders to #ISI on name of “special vetting agency for verification/screening.” Gives unprecedented influence on civilian authorities! pic.twitter.com/FnfHqvhA7p
— Asad Ali Toor (@AsadAToor) June 3, 2022
A staggering economy and an equally struggling political situation are leading us into very unprecedented times. The society is being pulled and stretched at the very seams by extremely antagonistic politics and quite plainly creating a very dangerous rhetoric all around. As for how much power the ISI would have, it is a question only time will tell.
— Amena Bakr (@Amena__Bakr) June 3, 2022
With supply side taps being kept on a tight leash, it would be safe to expect higher future oil prices due to shortfalls in production.
Pakistan’s fledgling startup scene is slowing
– Careem suspends food deliveries
– Swvl pauses operations
– Record funded startups Airlift and Truck It In fire third of its employees and narrow operations pic.twitter.com/AzBKce4LOa
— Faseeh Mangi (@FaseehMangi) June 2, 2022
The economy is struggling, the first ones to feel the pinch is the world of start-ups. Mass layoffs at multiple companies is alarming but not unwarranted. Higher costs with an anticipated lower demand companies are shifting to survival mode, cutting costs and trying to stay afloat.
Representatives of ethnic minority groups, rights activists and even students were charged with sedition because their peaceful slogans were deemed “anti-state”. Imran literally threatens dismemberment of the country if he’s not brought into power again and faces no consequences
— Ailia Zehra (@AiliaZehra) June 2, 2022
The situation is extremely fragile and Imran Khan seems to be adding fuel to the flames. Personally I think he wants to provoke the government and other quarters of power in Pakistan to react which can potentially be construed into a victory one way or another. Be careful of what you say Mr. Khan, a country of 220 million people is watching you.
Anyone who thinks IK didn't know he was loosing the VONC is being naive. He knew he couldn't win early elections if he called them, especially with the establishment against him.
The only way out was to create the narrative that is now prevalent. He played it well for himself. https://t.co/utcolcEpcO
— AK (@AzamAKhan2) June 3, 2022
The spats and uncertainty in the political landscape although might not be in the best interest of the nation or the economy, it is however giving the whole nation a chance to introspect. Most of the time political debates more or less spiral into arguments, nonetheless a healthy debate with an open mind can go a long way in educating people. Why not look at it glass half full for a change?
Pakistan needs a charter of economy that transcends beyond politics. Otherwise, each outgoing govt leaves a financial mess for the next one. Never ending cycle.
— Umar Saif (@umarsaif) June 3, 2022
Politicising critical matters of economy and foreign policy needs to end. Umar Saif rightly points out each successive government a financial mess for the next, this again restarts the cycle of blame games and tragic public statements.
I was surprised when PTI put GST on Solar panels. but thanks to previous govts corruption on IPP contracts meant that we pay 4 electricity whether we use or not.PTI govt discouraged use of solar panels so that more of us actually used the electricity that we still had to pay for!
— Najma Minhas (@MinhasNajma) June 4, 2022
Everyone was surprised! Taxes are primarily used to curb demand by increasing the prices. The PTI government on the one hand in its manifesto wanted more renewables in the overall energy mix while at the same time imposed a 17% GST on solar panels. The “take or pay” conditions of the agreement with IPP’s is another thorn that makes the situation worse.
Stellar line this morning from businessman friend who’d never say it publicly:
“PTI looking to place blame for Pakistan's financial crisis is like OJ looking for the real killers.”
— Hasan Zaidi (@hyzaidi) June 4, 2022
The glove just doesn’t fit ?
PM @CMShehbaz has directed stringent austerity measures for Government of Pakistan ministers, officers and relevant staff.
In the time of rebuilding economy, @GovtofPakistan shall lead with cutting expenses such as fuel, electricity for its operations.
— Salman Sufi (@SalmanSufi7) June 3, 2022
Just might be too little too late, people who call themselves leaders should charge and exemplify the change they want to see.