Jang Economic Session: ‘Oil inflation to harm govt before election’

LAHORE: Inflation in election year will increase political instability and problems for the government as popularity of the government declined with growing economic issues of public and industries.

These views were expressed by the experts in Jang Economic Session on ‘Increase in petroleum products prices increase inflation’. The panellists were Irfan Elahi, Khurshid Ahmed, Khalid Piracha, Khawaja Atif, Mohsin Bhatti, Muhammad Ahmed and Abdul Razzaq while the session was hosted by Sikandar Lodhi.

Irfan Elahi said the government did not pass relief of international reducing petroleum prices to public now increase with increase in international rates. He called for expanding the tax net instead of increasing the taxes and make equitable taxation system.

He said profit margins were reduced due to artificial increase in cost of doing business. He demanded imposition of tax on LNG too, besides following international formula for petroleum price fixation.

Khurshid Ahmed said that cost of production was on the rise and there is a need to improving the tax system to make self-dependency policy. He said Pakistan also needs to develop self-dependency for economic independence besides focusing on investment in skill development, education, infrastructure and export promotion. He believed inflation due to increase in petroleum prices will make public poorer.

Khalid Piracha said increase in petroleum products prices is first gift of New Year while producers take advantage of it by increasing their profits manifolds. He said no system was working properly in Pakistan. He termed the prime minister's statement on increase in petroleum products price lesser than international prices was incorrect. He said petrol should be available to public at Rs47 per litre without taxes and Rs63 per litre with taxes while it is state's responsibility to tell the public about taxes details.

Khawaja Atif said mini budget is announced every month while increase in petroleum products prices affects everyone. He said current increase in prices will increase public problems. He said increasing tax on existing taxpayers was injustice but need to expand the tax net and pass on the relief of decline in international prices to consumers as well.

Mohsin Bhatti said that increase in petroleum prices was unjustified but it was due to the failure of the government to collect taxes from other sector so increase prices. He said increase in prices will affect the public and will damage the government before election.

Muhammad Ahmed said that commoner budget and purchasing power was affected with everyday inflation and new taxes. He said increase in petroleum products prices will cause Rs10 to 15 increase in every item rates which will negatively affect the society.

Abdul Razzaq said that not only exports were affected but also the exporting and manufacturing sector was affected with economic instability. He said Pakistan’s exports were dependent on imported raw material, besides, deprecation of rupee against US dollar and petrol bomb affected the industry.