Jazzbot
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Oh bhai...oh bhai the prices were bound to rise because the previous government had, as far as I know, artificially kept them low with endless subsidies - Why do you think we took out more loans in the past 5 years than the previous 60 combined ?
When the time to pay-off those loans came - Thats when the sh*t hits the ceiling !
Therefore its not PML N but every analyst worth their salt were saying - Remove the Subsidies because this on an unsustainable basis & you can't continue doing this without growing bankrupt !
Thats why when the subsidies were removed the prices shot upwards !
As far as printing more money is concerned, consider two things along with it :
(a) the Treasury was empty - Where else was the Government supposed to pay for the expenses ?
Naturally there would be a fall-out from that in terms of inflationary pressures & would cause a devaluation of the Rupee !
(b) the EU concessions that we received alongside increased power supply to the Industry in these few months might even turn this depreciation of the Rupee into something that we can benefit from i.e cheaper exports !
As for the Electricity Production - That would've made sense if the KPK Government(s) had built a single Dam in KPK by using their own finance !
Because the Dam has been built by the finances provided by or secured by (sovereign guarantee) the Federal Government the Dam is not KP's property but that of the Federation therefore the Federal Government is correct in selling the Electricity back to KP after the deduction of the initial capital costs spread over the Dam's life or the payback period (whichever is shorter) & the maintenance & transmission charges associated with it !
Think of it this way - Why should KP only benefit from the Rs.2 electricity when even Baluchistan contributed for the funding for those dams ?
And why should KP escape the expenditure associated with it when they're benefiting from it as well ?
You talked about subsidies and I had something in my mind about it but wasn't sure so didn't post it in reply. But now as I've confirmed it, I want to share it with you.
Recently govt has given 30 billion Rs subsidy to all sugar mills, according to official figures more than 60% of sugar industry in Pakistan is owned by Politicians (Sharifs, Chaudharies etc). You talked about removing subsidy in electricity and other stuff so govt can revive economy and hence increase in price. Don't you think this new subsidy in sugar is a clear contradiction of your claims?
As per news, govt is planning to offer more subsidy to sugar industry in coming months, which also includes cash and interest free loan subsidies..