No Script Javascript is disabled. Please enable it for better working experience.
Advertisement
Monday 08 July, 2024
Advertisement

Pakistan is Giving Up GDP Growth to Sell 25% Cheaper Petrol: Economist

BY Shahzad Saeed May 27, 2023. 06:43 pm UPDATED: May 27, 2023. 06:43 pm

Advertisement

Atif Mian, a Pakistani-American economist, expressed concern on Wednesday regarding the Pakistani government’s choice to sell petrol at a 20–25% discount compared to nearby nations like Bangladesh, Sri Lanka, and India.

According to Mian, a former member of Pakistan’s Economic Advisory Council (EAC), this action has caused a decline in the nation’s GDP, making it harder for Pakistan to pay back its debts. He emphasized the necessity for authorities to take prompt action, pursue aggressive restructuring, and exercise bravery.

Mian brought up the comparison of debt default rates for Pakistan, Ghana, and Sri Lanka. Pakistan hasn’t officially defaulted in the last two years, but Ghana and Sri Lanka have.

The Sri Lankan Rupee (LKR) depreciated to a lesser extent, while the Ghanaian cedi (GHS) and Pakistani Rupee (PKR) both underwent significant devaluation. Mian noted that after defaulting, Sri Lanka and Ghana’s currencies increased as a result of enrolling in restructuring plans.

He argued that if the underlying crisis is ignored, boasting about not defaulting on debt is meaningless. Mian emphasized that handling a crisis with indecision and incompetence are both problematic.

He referred to Pakistan’s situation, where lower fuel prices were attained by limiting the import of raw materials needed for production and exports. The economic stability of the nation will be affected over the long term by this strategy.

Read more: Pakistan Tops List of World’s Cheapest Countries

 

Advertisement

Related Articles

Coldwave to hit Pakistan after Oct 17
Latest

Coldwave to hit Pakistan after Oct 17

According to the Pakistan Meteorological Department (PMD) on Thursday, a cold wave...

Maryam Nawaz's son Junaid Safdar divorce Ayesha
Latest

Maryam Nawaz's son Junaid Safdar divorce Ayesha

Junaid Safdar, the son of Pakistan Muslim League-Nawaz (PML-N) Maryam Nawaz, announced...

Who is Kathy Leutner? Sidney Crosby’s girlfriend
Latest

Who is Kathy Leutner? Sidney Crosby’s girlfriend

PITTSBURGH Sidney Crosby, a standout for the Penguins and one of the...

Petrol Price in Pakistan reduced by Rs. 8 from 1st October
Latest

Petrol Price in Pakistan reduced by Rs. 8 from 1st October

After three large increases in the previous fortnightly reviews, the caretaker government...

Punjab Announces Holiday for Schools on 28 September 2023 Amid Pink Eye Outbreak
Latest

Punjab Announces Holiday for Schools on 28 September 2023 Amid Pink Eye Outbreak

Due to an increase in pink eye (conjunctivitis) instances, Punjab's temporary Chief...

Who was Maddy Cusack?
Latest

Who was Maddy Cusack?

THE world has been shocked by the news that Sheffield United star...

Advertisement

Latest News

Linda De Sousa Abreu arrested for allegedly filmed having intimate relation with inmate in prison
US

Linda De Sousa Abreu arrested for allegedly filmed having intimate relation with inmate in prison

In the UK, a female prison guard faces charges after it was...

Farah El Kadhi Dead at 36, Cause of Death
Viral

Farah El Kadhi Dead at 36, Cause of Death

Local reports state that a well-known beauty influencer from Tunisia passed away...

Morgan Metzer beaten, bound, raped and nearly choked to death
US

Morgan Metzer beaten, bound, raped and nearly choked to death

A mother of two who was assaulted, restrained, sexually assaulted, and on...

James Everett du Bois, US Army vet swept out to sea
US

James Everett du Bois, US Army vet swept out to sea

Pictured is a US army veteran who was washed out to sea...

Advertisement