KARACHI:
The recent drastic change in the rupee-dollar parity has caused significant financial turmoil in Pakistan. The rise of 48% in the dollar price since January 2022 has resulted in an 81% increase in the interest rate and markup rates. The ripple effect of this has caused petrol and High-Speed Diesel (HSD) prices to skyrocket resulting in an unprecedented negative impact on the socio-economic fabric of Pakistan.
Oil Marketing Companies (OMC) are facing an uphill battle due to the situation. They now require 50% more limits for motor spirits and 70% more limits for HSD to procure and sell the same amount of fuel that they used to in January 2022. This has severely affected the OMCs’ ability to maintain their operations which could have cascading effects on the country’s economy.
OMCs have sounded the alarm about the current situation, but we have yet to see whether the authorities are paying any attention. The government must take immediate measures to mitigate the impact of this situation on the economy and the people of Pakistan. The relevant authorities need to produce a solution to this crisis before it is too late and avoid inflicting further difficulties on the people.
Syed Ovais Akhtar
Karachi
Published in The Express Tribune, March 11th, 2023.
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