With the new year, just days away the prediction of the soothsayers seems to be materialising now faster than ever. ‘2012, will mark the end of the world’. While the general perception regarding the coming of the apocalypse might border on skepticism, the prediction might hold true for Pakistan, where policy makers are bent upon piling misery on the already strained backs of the proletariat. The latest new Year gift has been in the form of a decision to raise gas tariffs to sustain profitability of the two state owned gas utility companies.
The government has decided to utilise revenue generated from Cess to fund infrastructure projects like the TAPi pipeline and the iran Pakistan gas project. One cannot help but praise the government’s concern for developmental projects, but our collective wisdom fails to comprehend why the same has to be done by breaking the back bone of the little middle class there is left. The impact of raising gas prices will have disastrous consequences for the economy, as it will adversely impact businesses directly associated with the consumption of gas. The government has on the one hand failed to establish a viable public transport network and on the other failed to take stock of the fact that a hike in fares of such vehicles plying the roads will have a crippling affect on consumer spending power.
While the MBBS doctor Mr Asim Hussain, who happens to be our petroleum minister disagrees that such a step will have repercussions for the common man, his views seem detached from reality. The hike in gas tariff of CNG, industrial, power and fertiliser sector will affect people from all segments of the economy and fuel cost push inflation, a connection that a novice in economics can easily make. Seems like Dr Asim Hussain’s prescription is going to kick start an allergic reaction, one that could take a heavy toll on PPP’s bid for the next elections.
