Pakistan to save $600b on reduced oil prices

Receding oil prices have facilitated Pakistan to abide by the IMF conditions while providing relief to masses, said Mian Shahid, Chairman United International Group on Tuesday.

Hec said Pakistan needs to improve pace of privatisation and other economic reforms to gain confidence of investors and lenders. Inaugurating UIC branch at EPZA, he said global oil demand had increased by just one hundred thousand million barrel in 2014 which indicate that prices would remain depressed throughout 2015.

Nawaz Sharif decided to give relief to masses than using funds saved on oil import bill to reduce budget deficit which was a great people-friendly move, he said. He said oil price slide would help Pakistan save 600 billion rupees annually which could be used on the social uplift.

He the said government policies coupled with IMF support and oil prices had started improving local currency which was helping boost confidence. He demanded of the government to accelerate power sector reforms, sell bleeding enterprises and give autonomous status to SBP.

He said insurance was must for development of the society but its share in GDP was less than one percent which was depressing, adding that share of Islamic Insurance was even less which needed government’s patronage. He said water is the most important issue for Pakistan and they have not built any major dam in the last 40 years. He said the government should go for difficult decisions otherwise economy and masses would suffer.