You may know well that soaring fuel cost and energy crisis is a global issue. It is not something that ANY Pakistani gov. can control
Sure... But the Imported Beggars can't be Choosers could have bought oil and gas from Russia at a discount to offset some of that.... Just like India, China, Europe, and Germany (still one of the largest importer) are doing from Russia.
But the failed banana state of Pakistan rather worship people who will still drone bomb you back!! Even after all the boot polishing!! Lol
1) When the cost of fuel goes up as high as it has now, subsidies will only help create BOP issues like the one that Pakistan is reeling from already. If the fuel that is exclusively used for export is low cost, then your industries will start importing more to produce goods and result in a overheated economy. The 6% growth rate that PTI supporters are cheerful about is the real reason for BOP in Pakistan. Countries like India are able to combat the deficit problem through FDI while Pakistan simply does not have that lever to pull.
2) Russian fuel subsidy to India is around $35 per barrel. The cost of fuel transport and insurance for Russian crude is $25 and therefore the net benefit is $10 per barrel. Assuming that Pakistan can get the same level of subsidy, how much of this fuel can Pakistan import without loosing its preferential trade market access in Europe? If Europeans say that Pakistan cannot export its textiles to EU (under GSP+ scheme) if it imports large volume of fuel from Russia, then who will Pakistan export to? Is the $10 worth of margin in fuel enough to upset Pakistan's trade partners? Recently it was reported that Russia is reconsidering the discount in fuel for India. Why would you believe that Pakistan can continue with discounted Russian oil forever?
PTI supporters need to accept the reality. The problems that Pakistani textile sector faces now have nothing to do with who is in charge of the government. For what it is worth, Miftah has already said in CNN interview that there is no offer from Russia to sell discounted oil to Pakistan anyway.
Pretty stupid if you ask me …. Everywhere in the world oil is impacting industry. It’s called inflation.We'll chat again in September 2022 to see if Chowkidar was right.
Pretty stupid if you ask me …. Everywhere in the world oil is impacting industry. It’s called inflation.
If oil is gone expensive Rs has also depreciated …. Economics 101 … weak Rs is good for exports .