THERE has been a massive surge in fuel prices and even more trouble is said to be in the offing. The government, which had been reluctant, had hardly any other option to take the country out of its current economic crisis by winning back the deal with the International Monetary Fund (IMF) except increasing the petroleum prices.

This unprecedented hike has drawn criticism from the public, and that is understandable. The hike in prices has immediate ripple effect on the entire economy. When inflation increases, the purchasing power goes down, and up goes people’s frustration with the government of the time. The government would definitely pay the political cost of this bold decision. It truly deserves credit for making this harsh decision in the national interest while jeopardising its vote bank for the forthcoming elections.

However, the government needs to take some other steps as well. For instance, markets should not be allowed to remain functional beyond a preset time, say, around 8pm. Most developed countries open businesses early in the morning and pull the shutter down not too long after the sunset. It saves electricity, reduces demand for petrol and ultimately eases pressure on energy requirements. Paradoxically, markets in major Pakistani cities open late in the morning and remain functional till late night; beyond midnight in case of shopping malls. That needs to stop.

Besides, the government should immediately impose one-time emergency tax on companies earning windfall profits.

The petroleum companies, beverage manufacturers, cigarette, cement, steel sectors, banking and auto industries, have all minted money on the back of the deficit crisis due to inventory gains and dollar trade. There must be a payback time, and that time is now. With this amount, the government may provide direct subsidies to the poor which may ease their everyday hardships to some extent. It is also time the government massively invested in installing solar systems in government buildings, public places and small towns. Taxes and duties have been revised on import and sale of solar system, but further incentives should be considred to encourage people to install solar panels.

These steps may help the government ease financial burden on the public in the wake of astronomical rise in fuel prices.

Ali Hassan
Karachi

Published in Dawn, June 16th, 2022