Pakistan Economy is evolving in Vicious circle:

The tale or story of price rises in current years is a terrible story of the dilemma of the miserable nations who have been crushed by their own government. The reality that electricity price has risen excessively high percent since the “people’s” government took over in March 2008 and up till now it could neither put awful power load-shedding to an end nor bring the so-called circular debt down and power supply situation has gone from bad to worse in these years. Power tariff was so high. When the PPP government came to power, electricity shortfall was so high and the circular debt stood high as well in billion. Now when the cost of electricity has reached high unit, the shortage has risen to high megawatt and circular debt to about in billion. Inflation and all essential items and resulting cost of living is up high per cent making the life of the people depressed, despite a daily loss of billion in industrial and commercial activity. 

The government is pleading that global oil price hike up and it is the result of the situation now obtaining as more than megawatt electricity produced in the country is consuming furnace oil. But the fact remain that crude prices were approximately $110 in March 2008 when the government took the charge. This shows that mere corruption at the highest level and lack of governance are the factors mostly behind the situation at the moment obtaining as four years of period is not that inadequate as to weaken in improving the situation that appears the most horrible in the present circumstances. What the government failed in imperfectly is that it has not been able to reduce line and system losses in the power sector which, together with power theft at the request of powerful groups, is accounting for the loss of at least 40 percent of the total power production against a shortfall that, on an collectively, comes to about 35 percent. 

Not electricity tariff alone, the government has also raised significantly the prices of petroleum products over the past four years to add to the vicious circle of inflation. The prices of petrol and diesel have been raised by so many percent, between March 2008 and May 2012. As against that earnings of the fixed income group have seen raise once in the entire period and that has long been tough by the heaving grinder of rising cost of living. Ironically when there are hopes that the federal government will affect increase in salaries and pension in the coming fiscal year, provincial governments are opposing an increase of more than 20 percent. When provinces ate getting about 70 percent of the divisible tax pool share, they must be large-hearted as much as necessary to observe the distress of the people diminish sensibly.


About khaproojanu

Assalm-o-Alaikum: How are You Dear Friends! My name is Zafar Ullah Khan. I am the Person with Special Needs. I am interested in Blogging, Articles writing, web content writer, and MS-office applications. I have Master degree in Political science and Graduate degree in Economics.
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