The government seems hesitant in taking the crucial decision of raising petroleum prices knowing well the move will be unpopular and have a huge political cost. The PML-N also doesn’t want to take the burden of such a decision solely on itself as part of a coalition government.
Prime Minister Shehbaz Sharif is yet to take the nation into confidence over his future course of action. The party leadership has formulated strategies and plans after being summoned by Nawaz Sharif in London but the decision has not been made, leaving the nation in an economic and political imbroglio.
The government has to make the crucial decision on raising petrol prices ahead of a meeting with IMF officials. The revival of the bailout programme rests on raising fuel costs and ending subsidies on oil and electricity. The prices have remained unchanged since March when former prime minister Imran Khan decided to freeze prices despite a massive increase in the global market. The PML-N has been blaming him for creating mayhem for economic managers and leaving the decision on them.
Such is the gravity of the situation that the government is considering whether to increase oil prices or dissolve the coalition government. The decision on holding early elections also does not solely rest with the prime minister as he will have to consult coalition allies. During the London meetings, the PML-N mulled over the tough economic decisions and the political costs which they will have to pay.
The government is giving an indication that it will complete its constitutional tenure and hold elections only after bringing electoral reforms. However, there is no indication that the coalition will continue till August 2023. Speculations are rife that elections could be held as soon as November this year as staying in power could be disastrous for the PML-N for taking unpopular decisions such as raising fuel prices.
Thus the prime minister must involve all stakeholders before taking any economic decision. The government may not be keen on raising fuel prices but the country’s foreign reserves are dwindling, current and trade deficit is widening, currency is depreciating, and default is looming. Will the government pay the political price and raise fuel costs or will it prefer to hold elections? In any case, it needs to work full throttle for an economic turnaround and reduce the burden on the masses.
