An all too familiar pattern. The prices of petroleum products are increased; the media and the opposition go up in arms over the move; the government goes on the defensive, claiming Ogra had no other choice, that the international oil markets are fluctuating upwards. Occasionally, the ruckus drummed up by the opposition and, amongst coalition members, the MQM, gets so loud that the nervous, numerically challenged treasury benches are bullied into reversing the price hikes. This last bit has occurred once before and the prime minister has at least hinted at the possibility of it happening again. Other than the ephemeral populist glow, this is just about the most irresponsible response to the challenge at hand that could be.
Footing the bill for oil price fluctuations is absolutely unsustainable, specially for as cash strapped a government as ours. Governments the world over do fork out cash to some unsustainable ends but that quantum should perhaps be reserved for schemes like income support programs. The problem with financing subsidies for products that belong to turbulent international markets is that the tab just keeps getting larger and larger, eating up fiscal space for everything else. The last time the government reversed the price increase, the government took a hit but only to have the price increase again the next time the international market dictated a higher price.
A profile now, of the political parties. The ANP opposes irresponsibly, as mentioned above the oil price increases. But it does support the plan to reform the GST and realises the huge database it could build against which to collect income tax and crack down on evaders. What to make, on the other hand, of parties like the MQM, who oppose both the high prices and the means like the RGST? Though the MQM and far right parties might be the most vocal on the issue, the line of the Leagues is also identical. Expecting the government to cough up money for just about everything, all while preventing it from means to earn more revenue is an impossibly unreasonable position. An inviolable consensus on the issue is long overdue.
