Pakistan's government raised consumer fuel prices sharply on Friday, paving the way for the IMF's $6 billion bailout package to be reactivated and the country's collapsing economy to be stabilized despite deepening political turmoil. The move by the interim government was interpreted as an attempt to resurrect a $6 billion bailout from the International Monetary Fund.
While Pakistan Observer is always here with the latest political and entertainment news in Pakistan, this blog will give you an insight into the current situation regarding the rise in fuel prices. Let’s dive in!
Will It Be Critical For The Government To Maintain Momentum?
The move, which raised gasoline and diesel prices by about 20% — or about 15 cents a liter — sounded alarm bells that Pakistan, which already faces double-digit inflation, would join a wave of global defaults as financial shocks from the pandemic, the Ukraine war, and rising interest rates thrashed many poorer nations.
Analysts, however, believe that the decision will cost the new coalition government public support, adding to the political uncertainty that has gripped the country since the formation of the current government early last month .
According to the Atlantic Council's director of the Pakistan Initiative, the price increase indicates that the government has decided to bite the bullet and make necessary choices, even if they cost short-term political capital. He also stated that the increase will calm markets and reduce uncertainty. It will be critical for the government to maintain momentum and make decisions that will lead Pakistan out of its current crisis
Is The Decision Correct Context Of The Current Political Situation?
Since the takeover, the opposition has showcased a number of political rallies, attracting large crowds and harshly criticizing the current coalition government. Some officials now fear that the government's move to satisfy the I.M.F. will provide the opposition with a wave of public outrage that they can exploit.
Conversations between the IMF and the new interim government headed by the prime minister had been hindered for weeks over the terms of reviving the debt relief, which was announced in 2019 but was later suspended after Pakistan's previous government failed to meet certain loan conditions, such as cutting energy subsidies.
Pakistan has hoped for the release of the $700 million seventh portion of the IMF bailout package. Earlier this week, a new round of talks in Doha, Qatar, between the IMF and the new Pakistani government appeared to fail after fund officials refused to accept the Pakistani request to postpone the end of government subsidies.
The prime minister had been hesitant to end government energy subsidies and roll back unfunded subsidies to the oil and power sectors — a key IMF demand — for fear of a public backlash that would reduce his party's chances of success in the next general election. These elections are scheduled for next year, but the new government is under increasing public pressure from opposition supporters to hold them sooner.
Is The Government Reluctant To Embark On Meaningful Economic Reforms?
On Thursday, the former prime minister issued a warning to the government to call new elections and dissolve Parliament within six days. He issued the warning shortly after leading thousands of supporters to the capital on Wednesday evening. In the capital and several other Pakistani cities, enraged supporters clashed with police. Police arrested at least 1,700 protesters in Punjab, the country's most populous province.
That political pressure has added to the new government's reluctance to embark on meaningful economic reforms that, while necessary for long-term economic stability, would cause immediate pain to the wallets of Pakistanis.
Conclusive Thoughts
As mentioned above, the decision of increasing fuel prices could be better for the economy of Pakistan if you look at the bigger picture. However, it would seem harsh and cause immediate pain to the wallets of Pakistanis. Atleast this is what the analysts believe. To read more about the current political situation, current trends, and Pakistani entertainment news, keep reading Pakistan Observer.
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Owing to a disruption in vaccine supply from the Centre, several vaccination centres across Sindh, including Hyderabad, had to temporarily close due to a shortage of vaccines.According to the Sindh Health Department, forty per cent of the vaccination centres in Hyderabad and parts of lower Sindh had to be temporarily shut down as they ran out of vaccine stock.تازہ ترین خبریں Meanwhile, the remaining vaccination centres are only facilitating those who visit to get the second dose of the vaccine.Per the Sindh Health Department, the shortage of vaccines is being faced because the federal government has not sent the supply to the province, adding that the new stock is expected to arrive by June 20.In Hyderabad, 21 vaccination centres have run out of vaccine stocks, the district health officer said.Logistics, coordination challenges disrupt vaccine supply in Pakistan Pakistan on Tuesday faced a shortage of COVID-19 vaccines due to the lack of coordination among government bodies, coupled with a disruption in supply from China.Officials in the federal government said that the task of procuring the vaccines had been assigned to the National Disaster Management Authority (NDMA) while the National Health Ministry was relieved of this duty.
As a result, a lack of coordination was witnessed while there was a disruption in vaccine supplies from China which led to the crisis.The NDMA, officials said, was not only dealing with Chinese vaccine manufacturers, including Sinopharm, Sinovac, and CansinoBIO, but it was also negotiating with Pfizer for the procurement of its mRNA vaccine for the country, a deal which could not be struck yet.Similarly, they said, Pakistan was relying heavily on the National Institute of Health (NIH), Islamabad, for the preparation and filing of single-dose Chinese vaccine Cansino from the bulk concentrate, which is being distributed in the name of PakVac, but the NIH also failed to fulfil its commitment of sustained supply of the single-dose vaccine.“NIH Islamabad had assured that they would be providing three million doses of PakVac (Cansino) vaccine per month but it failed to meet its commitment”, one of the officials said.In the beginning, the Pakistan government inoculated people with the double-dose Sinopharm vaccine from China, followed by AstraZeneca from the UK before opting for SinoVac and single-shot Cansino from China.
The National Command and Operation Centre (NCOC), which had received 100,000 doses of the Pfizer vaccine, has supplied 26,000 doses to Punjab, which will be administered to immunocompromised people, such as patients of organ transplant, cancer, and AIDS on a priority basis.When contacted, a spokesman of the Ministry of National Health Services, Regulations & Coordination said that the shortage of vaccine has spread thinly across the country.
Therefore, he suggested that the relocation of vaccines from limited use CVCs was required.He further said that only limited quantities of vaccines were reserved centrally.
“The next consignments of vaccines are expected towards the end of the current week,” he told The News.
This is the story of how Karachi’s 52 acres of an amenity plot that were reserved for a park and were part of the city’s famous Safari Park in District East fell prey to massively illegal commercial activities over the years.Latest Pakistan News obtained copies of at least five agreements that allowed commercial activities on the premises of the park over the course of five years and found out under whose watch those agreements were signed.The park is currently known as Aladin Amusement Park, which had been housing Aladin Shopping Mall and Pavilion End Club.
On June 14, 2021, the Supreme Court declared both of them illegal and ordered their demolition within two days.
Amenity plots are reserved for parks, gardens, playgrounds, graveyards, hospitals, schools, colleges, libraries, community centers, mosques, or other such purposes.It began in 1995The saga of Aladin Park started in 1995 when then Pakistan People’s Party (PPP) chief minister Syed Abdullah Shah and chief secretary formed a committee to convert 52 acres of Safari Park into an amusement park.
Hameed Haroon chaired the committee, and then KMC administrator Fahim Zaman was one of its members.On May 30 Zaman signed an agreement with Zodiac Joyland, which was granted the 52 acres facing Rashid Minhas Road for 25 years to develop an amusement park on the pattern of Disneyland.
The lease was granted on the condition that the land would be used for amenity purposes.The developer was bound by the agreement to submit a detailed master plan and a detailed design of the proposed amusement park to the KMC within six months.The agreement stated that 66 percent of the area would remain open space, while the remaining 34 percent could be covered by building structures and machines, within which not more than five percent could be used for commercial purposes like gift shops and snack bars.The fifth clause of the agreement clearly restricts the developer from subleasing or assigning the project land or any part of it to anyone else.A fresh agreementZaman was the administrator until April 4, 1996.
On April 9, when PPP was still in power and Aznar Hussain Zaidi was the new KMC administrator, a fresh agreement was signed between the KMC and AA Joyland.
