Reduced oil prices: Country to save Rs 600 billion on annual import bill

[Edevelop]

The significant decrease in oil prices will help Pakistan save Rs 600 billion annually which can be used on the social uplift of the masses, an industry expert said Tuesday. The receding oil prices have facilitated Pakistan to abide by the IMF conditions while providing relief to masses, Mian Shahid, Chairman United International Group said.

"The global oil demand increased by just one hundred thousand million barrel in 2014 which indicated that oil prices would remain depressed throughout 2015", he added. Shahid said that Nawaz Sharif government decided to give relief to masses than using funds saved on oil import bill to reduce budget deficit and social development which would have been a great people-friendly move.

"Government policies coupled with IMF support and decrease in import bill owing to reduced oil prices have started improving local currency which is helping boost confidence, he noted. He emphasised that Pakistan needs to improve pace of privatisation and other economic reforms to gain confidence of investors and lenders. He demanded of the government to accelerate power sector reforms, sell bleeding enterprises and give autonomous status to SBP.

Shahid said water is the most important issue for Pakistan but none of the governments built any major dam in the last forty years. The Government should go for difficult decisions, otherwise economy and masses would suffer. He pointed out that Insurance is a must for development of the society but its share in GDP is less than one percent which is depressing, adding that share of Islamic Insurance is even less which needs government's patronage.

Reduced oil prices: Country to save Rs 600 billion on annual import bill | Business Recorder

 

[SBD-3]

Thats given our oil imports volume remains the same. But with lower prices. Oil imports are likely to pick up. So bill will not be cut in half because the oil prices have halved.