BTW, don't forget the impact of the rupee devaluation on the rising prices.
And no one can shy away from the fact that the VONC brought about this new wave of rupee devaluation.
People I talked to, who know some economics better than me, have said that the actual value of the rupee right now should be around 185 or thereabouts, baki sab is artificial due to the political situation and all.
So this has an effect on the situation as well.
1- PTI hoped, or calculated, or predicted, or a mixture of all, that the current commodity cycle would subside by now, and they budgeted the subsidy calculations until this period.
2- The room for the subsidy was hence created keeping in mind this target.
3- The resulting increase in dollar value, plus the sustained commodity cycle has wrecked things.
4- Russia does figure in somewhere in this scenario as well.