Friday, March 4, 2011

Economists Against Oil & Petrol Price Hike


Group of emerging economists held a meeting in Karachi. They all come up with one decision, all seriously opposed the government move to increase oil prices in Pakistan at this time.

The Price Hike has already sparked an outcry from the political groups across the country but now the leading economists and business persons are speaking up against this move by the government for the first time.

"This hike is dangerous for Pakistani Rupee and the Economy" Zeeshan V, an emerging economist said in the meeting. "Fulfilling expenditures through central bank borrowing and not raising the oil prices has created a kind of equilibrium in the economy which was forcing Pakistani rupee not to go down despite heavy central bank borrowing, but now this would be reversible and would force Rupee to go down versus other currencies as oil price hike would force other commodities to rise" he added.

The country is already in economic turmoil as Pakistan Peoples Party government has failed to recover the economic cycle. Late last year, they have nearly lost its majority in parliament as allies threatened to leave the coalition amid oil price hike.

The ruling party backed off on the increase to save the coalition, upsetting international lenders whose billions are keeping the country's economy afloat.

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