Federal government intends to bring a multi-faceted relief package for consumers and producers to keep the prices of basic commodities stable and reduce production cost of finished products. Benefits accruing from massive decline of crude oil and significant decrease in palm oil prices in the international market shall be passed on in the shape of substantially lowering prices of petrol diesel, ghee and cooking oil and reduction in electricity tariff.
Fiscal measures shall be announced and immediately to keep the production activity going in the manufacturing sector and boosting agriculture output. Likewise incentives shall be given to exporters to protect them from the negative impact of almost meltdown like situation in the global economy. Textile products contribute lion share to country’s exports. According Pakistan Exporters Association General Secretary, more than 50 percent ready-to-shipment exports have been delayed. It remains to be seen how IPPs cartel responds to lowering electricity tariff as Power Purchasing Authority has filed a petition for raising electricity tariff by Rs.260 with fuel price adjustment. Hearing of this petition has been fixed for March 25. Likewise, the influence of cartels of agriculture commodities such as wheat, rice, sugar and pulses and ghee manufacturing association cannot be underestimated in resisting government decision of lowering prices.
