No cause to celebrate

THE Government is taking pride that the country recorded its lowest fiscal deficit in at least 27 years at 0.7 per cent of GDP. Official data showed that petroleum levy remained the government’s largest revenue source, surging by 45% to Rs1.205 trillion despite mounting public suffering caused by higher fuel prices amid the US-Israel war on Iran. Meanwhile, the State Bank of Pakistan (SBP) warned on Tuesday that the conflict in the Middle East could pose medium-term risks to the economy, as supply chain disruptions and surging energy prices may drive inflation and impact remittances and external trade. The authorities concerned have all along been claiming that the economy has been stabilized and now they are focusing on growth. However, ground realities and experience of the masses is quite the opposite as the Government repeatedly made people swallow bitter pills on the promise relief for them was forthcoming. The Middle-East crisis exposed the hollowness of such claims as instead of providing relief at the most critical juncture, the Government exploited the opportunity to mint money. There is something fundamentally wrong with the economic policies of the Government as tax collection still comes through traditional but unjust strategy of hiking prices of POL products, upward revision of electricity and gas tariffs and milking of the salaried class rather than taxing untaxed or under-taxed segments of the society and sectors. It is a matter of shame that instead of offering relief to the people, the Government is earning a profit of Rs. 145- on every litre of petrol and PDL alone constitutes Rs. 117.41 a litre. Both the federal and provincial governments are also guilty of committing economic exploitation of the people by initiating questionable moves to force power consumers to pay more and taxing even well and bore water. Similarly, investment, production and exports are also considered as important yardsticks about health of an economy and Pakistan’s performan