THE recent hike in petrol prices is a bomb that has fallen on the people of Pakistan. This will add to the agony of the common man in these inflationary times. The increase is linked to fluctuations in the global market in the wake of attacks on Iran by Israel and the United States. However, with a more stable and equitable economy, the impact would have been much less negative than what is the case currently.

Successive governments in Pakistan have failed to use direct taxation as an effective means to raise the required funds. Agriculturists, retailers, wholesalers, real estate barons and many more among

the elite are subjected to lesser rates of taxation. That being so, the government has no capacity to offer subsidies to the masses because it has insufficient revenue.

Malik Tariq Ali
Lahore

Published in Dawn, July 8th, 2025