The finance minister said: 1) the decision has been taken to revive the International Monetary Fund (IMF) program and 2) the government had no other option but to raise the prices, adding that the government would still bear a loss.
Many of the readers would burst into laughter after reading that the government was aware of the political repercussions of the decision, saying "we will face criticism but the state and its interests are important to us and it is necessary for us to save it."
He didn’t have the realization whatsoever, when he said, the country could have gone in the "wrong direction" if the steps were not taken.
He said the decision was a tough one for Prime Minister Shehbaz Sharif, saying "we cannot let the state sink for the sake of politics."
He claimed the price revision was not solely due to the IMF's pressure, saying "the Fund indeed refused to grant further loan until we raise prices ... but we [also] had to take this decision after all."
One can recall, the price hike came a day after the government and the IMF failed to reach an agreement on an economic bailout mainly because of the indecision of Shehbaz Sharif government on fuel and electricity subsidies and resultant next year’s budget uncertainties.
I am inclined to draw a conclusion that the strings on incumbent government are still pulled by certain external forces, if not many of the acts sound ‘childish’.
It may be recalled that most of the analysts, even the worst critics of PML-N policies have been asking the incumbent government to announce hike in the prices of energy products and get US$ one billion tranche released.
I may also go to the extent of saying that general public was ready to accept the hike to avoid further delays in discussions with the IMF. However, Pakistanis will be right in asking the Minister, what took you so long to arrive at the conclusion which was writing on the wall?
