No removal of subsidies before IMF talks

[Jango]

To which Bajwa will reply, that I have completed the task assigned to me by Lu.

Now you clean up the shit while I am away to pastures new (only need to wait till October)

Bajwa has already refused to sit in the NSC meeting, and rightly so.

 

[ziaulislam]

It's tricky.

IMF won't give money, allies won't give money if IMF won't, and so on.

We might see 4 day weeks, curfew after 8 or 9 in markets, and other such measures. The import measures taken right now are cosmetic, they don't have any real impact on the import bill. We might see a complete ban on CBU as well soon. Right now it was removed at the last moment due to pressure by the auto companies.

Let's see what happens.

That is why a government is for 4/5 years, so you can take the tough decisions without worrying about the political ramifications.

What do you mean. They are here for 1.5 years thats a long time
Problem is they promised to decrease prices .
They said we will tell IMF what to do and we have done it before. They were right..they were able to do so because at that time USA was giving 2b$ csf and wanted drones etc.
Now things have changed

 

[Jango]

Ban of import will deteriorate the tax revenue. LOL

That's the exact predicament they have.

In economics, EVERYTHING has an effect on EVERYTHING. You cannot take any decision in isolation.

Not long ago, they were criticizing Imran Khan on rising fuel prices despite them knowing fully that the factors are all external.

How can they justify the U Turn now specially when Khan is charging on them will full might?

Miftah first said that IK is ruining people by raising prices, then when prices were frozen, he criticized that decision. Then the govt changed. He again criticized the decision to freeze prices. Now today he said that we cannot burden the common man, hence we are not raising prices.

To ullu kay pathay IK nay prices freeze aam bechne kay liay ki theen?

I still remember a TV program (I think Nadeem Malik) where he gave a long *** formula on how electricity can be reduced to 12 rs per unit, without doing any major change, just by playing smartly. And ever since he has come prices have only increased, and that formula has gone extinct.

What do you mean. They are here for 1.5 years thats a long time

Halat patlay hi lag rahay hain boss

 

[Waterboy]

India reducing fuel prices has added more fuel to the fire as Imran Khan is using this news as political tool repeatedly since yesterday and also linking this price cut to Russian crude. No escape route visible.

https://twitter.com/x/status/1528073909609943041

People have already busted this news. South asia index is a well known propaganda piece.

Lekin lagay rahao

 

[PakSword]

I still remember a TV program (I think Nadeem Malik) where he gave a long *** formula on how electricity can be reduced to 12 rs per unit, without doing any major change, just by playing smartly. And ever since he has come prices have only increased, and that formula has gone extinct.

That's why we shouldn't expect an owner of a candy factory, or an accountant to run the economy of Pakistan, just like we don't expect an economist to prepare financial statements of a listed organization in accordance with IFRS, or a doctor to run a factory effectively.

 

[PakSword]

That is indeed an objective. You can expect Miftah to raise interest rates as well. The aim would be to slow the economy and arrest the trajectory of CAD. Overall less imports mean less $ outflow

At the moment, a big chunk in CAD is due to fuel imports. The import bill of fuel needs to be passed on to the consumer that would result in saving some money that is currently being spent on subsidies.

However, as the present government was criticizing the previous one without realizing that the shit would fall on them when they takeover, it is now becoming a decision that amounts to political suicide, karma that is..

 

[Wood]

At the moment, a big chunk is CAD is due to fuel imports. The import bill of fuel need to be passed on to the consumer that would result in saving some money that is now being spent on subsidies.

However, as the current government was criticizing the previous one without realizing that the shit would fall on them when they takeover, it is now becoming a decision that amounts to political suicide, karma that is..

Fuel requirements can also come down if the economy slows. But the government has to be careful to not allow too much deceleration as that could result in joblessness

 

[PakSword]

Fuel requirements can also come down if the economy slows. But the government has to be careful to not allow too much deceleration as that could result in joblessness

As more than 60% of the electricity is generated from fossil fuels, many small industries will stop production and... you know how that would affect the overall economy.

Rising the price will definitely reduce the CAD as well as save a lot of government money.. but in the longer run, reduce exports and increase joblessness that will hit a common man from two sides.

 

[-blitzkrieg-]

Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF

Says "will bring good news"; claims IMF team refused to come to Pakistan because of Imran Khan's planned march to Islamabad.

www.dawn.com

Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF​

In a way this is a positive development for the ordinary Pakistani citizens. They cannot sustain a fuel, power price hike now, Would result in immeasurable hardship and chaos. Could result in a revolution as well.

While the forex position is perilous and the twin deficits are alarming for sure, the GOP must negotiate other sources of funding till the economy can sustain such price hikes

Any suggestions from experts here?

Niaz sahib @niaz
Dada @Joe Shearer
Kaptaan sb @Indus Pakistan
Areesh bhai @Areesh
@Jango
@Norwegian
@Chak Bamu
@Vapnope

Regards

They are only doing this because they know their days are numbered.

 

[niaz]

Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF

Says "will bring good news"; claims IMF team refused to come to Pakistan because of Imran Khan's planned march to Islamabad.

www.dawn.com

Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF​

In a way this is a positive development for the ordinary Pakistani citizens. They cannot sustain a fuel, power price hike now, Would result in immeasurable hardship and chaos. Could result in a revolution as well.

While the forex position is perilous and the twin deficits are alarming for sure, the GOP must negotiate other sources of funding till the economy can sustain such price hikes

Any suggestions from experts here?

Niaz sahib @niaz
Dada @Joe Shearer
Kaptaan sb @Indus Pakistan
Areesh bhai @Areesh
@Jango
@Norwegian
@Chak Bamu
@Vapnope

Regards

Pakistan is perhaps the only country in the world which sells petrol & diesel to general public at lower price than what it costs,. For example Indian average petrol price is about Rs 100 per litre which equates to Pk Rs 259. London petrol station sell gasoline at £1.74 per litre or about Pk Rs 430/litre whereas per my info Petrol is available at close to RSs 150 /litre in Pakistan.

Based upon my data this works out be about 1200 Crore per year loss. I could be off in my estimates but at this rate we are on certain part towards national bankruptcy. True that people will suffer if you increase fuel prices but surely people will suffer more if the we have no money to import essential items such as wheat, cooking oil or fuel itself? Clearly political expediency appears to far more important than the national well-being; perhaps that is why Imran Khan reduced the fuel prices just before he was removed despite the fact that PTI team had signed an agreement with IMF to end fuel subsidy.

But then we are a "PROUD" nation; we are willing to eat grass if need be. So be it.

 

[Jango]

Pakistan is perhaps the only country in the world which sells petrol & diesel to general public at lower price than what it costs,. For example Indian average petrol price is about Rs 100 per litre which equates to Pk Rs 259. London petrol station sell gasoline at £1.74 per litre or about Pk Rs 430/litre whereas per my info Petrol is available at close to RSs 150 /litre in Pakistan.

Based upon my data this works out be about 1200 Crore per year loss. I could be off in my estimates but at this rate we are on certain part towards national bankruptcy. True that people will suffer if you increase fuel prices but surely people will suffer more if the we have no money to import essential items such as wheat, cooking oil or fuel itself? Clearly political expediency appears to far more important than the national well-being; perhaps that is why Imran Khan reduced the fuel prices just before he was removed despite the fact that PTI team had signed an agreement with IMF to end fuel subsidy.

But then we are a "PROUD" nation; we are willing to eat grass if need be. So be it.

You are well aware of the oil markets, at least more than me.

Is there any other country which regulates the fuel prices as we do?

What are the pros and cons of regulated vs market determined oil prices?

 

[niaz]

You are well aware of the oil markets, at least more than me.

Is there any other country which regulates the fuel prices as we do?

What are the pros and cons of regulated vs market determined oil prices?

Regulated markets are things of the. past. Only item you can control these days is the profit margin of the oil companies and the patrol pump dealers. Except those who are surplus or self sufficient , no country that I am aware off is selling to the retail at lower than their out of pocket costs. such loss. Pakistan does not really regulate oil price; instead of different prices at different cities (like in India, petrol pump prices are uniform through thru 'Inland freight equalization margin''. At least that is the case to the best of my information. OGRA's job is not to "Regulate" the oil price is the true sense of the word. OGRA recommends the price applicable for nest month based on actual import cost of the previous month. Hence this a controlling tool of the gov't.

 

[Jango]

OGRA recommends the price applicable for nest month based on actual import cost of the previous month.

Recommends to who?

But on the flip side of the argument, privatizing these mechanisms and having a free market requires that you have a strong regulator in place. In a country like Pakistan, that is seldom the case, hence the need to have a strong grip on affairs within the market itself, to prevent manipulation and price gouging.

 

[RescueRanger]

Muftah to daddy USA: dear dad - no mon - no fun- you’re son.

Daddy USA to Muftah: Dear son, very bad- very sad. You’re dad.

 

[ghazi52]

This Imported government is waiting to be thrown out to become Shaheed...
Bajwa called ..

Pakistan army chief, Saudi crown prince discuss military cooperation....​

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