Economist Abid Sulehri's analysis on government's budgetary measures and inflation
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00:00First of all, we would like to know about the public reaction. People are very disappointed about it.
00:07How much money has been added to the amount of Rs. 7?
00:12Tell us how much more will be added to the amount of Rs. 7 and how much more petrol will be added to the amount of Rs. 70?
00:23Thank you very much. First of all, I would like to say that I totally agree with the Finance Minister that it is very important to participate in the IMF program.
00:38I am also not in agreement with the fact that this will be the last IMF program in Pakistan.
00:42Pakistan will have to participate in 2-3 more IMF programs continuously.
00:50The government has to choose how to meet the conditionality of the programs and how to meet its objectives.
01:01This is my question to you. Why do we participate in the IMF program?
01:05Do we have to pay interest and loans with that money or do we get a window to improve our economy through which we try to avail?
01:16On what basis is the Finance Minister saying that this will be the last IMF program?
01:22We participate in the IMF program to avoid Diwali so that we can get loans and repay our old loans.
01:31As I said, this will not be the last program.
01:34May Allah make it the last program.
01:36But the numbers at the moment do not support that this will be the last program.
01:42We will have to take programs after this as well to repay our old loans.
01:48You talked about the prices of oil.
01:51There is a trend right now.
01:53The price of Brent is $85 per barrel.
01:57The government had a strategy.
02:01In the last two months, when a cushion of Rs. 20-25 per litre was given, if there was a margin at that time,
02:10the prices would not have dropped suddenly.
02:12At that time, there would not have been a need to increase prices suddenly.
02:16But at that time, it was also necessary to make the public happy.
02:21The simple answer to this question is that if prices continue to rise in Al-Mandhi,
02:25then prices in Pakistan will also increase accordingly.
02:29Mr. Abid, I wanted to say one thing.
02:31The cost-cutting measures in our country are generally considered as promotional measures.
02:39It is said that this will happen.
02:43There are complaints from the public.
02:45We also represent them and tell them that free fuel, 90,000 cars, free electricity,
02:51the price of electricity and petrol are increasing.
02:55And of course, they are interlinked because the fuel prices are increasing.
02:57So, the government should think seriously about this.
03:01If they put pressure on one side, how long will the public tolerate it?
03:05After July 1, the budgetary measures will increase the prices.
03:13So, the public will definitely be upset.
03:17And especially the middle class, which works as a growth engine for any society,
03:21we will see that whether it is income tax or other indirect taxes,
03:29the middle class is currently affected.
03:31Electricity and gas prices are increasing.
03:35Oil prices are also increasing.
03:39This will spread further depression.
03:43And here it is very important how the government communicates with the stakeholders,
03:49with the public,
03:51how to convert its mid-term and short-term targets
03:59so that people know that all this is being done.
04:03The result is coming out.
04:05And most importantly, as you said in your question,
04:09it should not be seen as one-sided.
04:11The government and the government officials
04:15will have to bring it in a clear shift in their way of living.
04:21On the one hand, we are seeing that everything is on the other side.
04:25We have seen that the Governor's house was also repaired.
04:35This will not have a big budgetary impact.
04:39But these are just a few examples.
04:41I can give you dozens of examples in every province.
04:45Budget committees were formed.
04:47The Prime Minister announced it a few days ago.
04:51To what extent are they doing their job?
04:55The committee is so effective that it can be implemented.
05:01We will have to see how many of the recommendations of the committee have been implemented.
05:07And how many have not been implemented.
05:11Will it be possible or not?
05:13Mr. Abhishek, one more thing.
05:15Mr. Abhishek, should we expect what was happening a few days ago,
05:19that the petrol prices would be revised in 15 days?
05:21Is it going to be the same now?
05:23It will be exactly the same.
05:25Of course, the prices of oil change in every market.
05:29And they are revised after 15 days.
05:31The things that used to bother the public,
05:35which are not in the budget,
05:37are not in the budget.
05:39Electricity prices are revised every two months.
05:43Petrol prices are revised after 15 days.
05:47Thank you very much, Mr. Abhishek.