THE fuel price in the international market has gone down to $33 a barrel. This downward slide from about $60 has occurred at a time when the global demand is being eroded by the coronavirus outbreak. May be this is a big opportunity for us to pass on the benefits of lower fuel prices to the public.

The government had last month reduced the petrol prices but they were in no way commensurate with the international fall. Also, this measure by the government did not have any effect on the buying power of the common man as it did not bring down the prices of essential commodities.

In our country, historically, whenever the fuel prices are raised, the prices of all essential items automatically go up. However, their prices never ever fall with the decrease in fuel cost. The government has never had an effective mechanism in operation to ensure that prices go down also.

As a result, the common man always suffers. I sincerely believe that this is a godsend for the PTI government to reduce the petrol prices to half, to about Rs50 a litre, and at the same time ensure that the prices of daily use essential items are lowered accordingly.

The government has miserably failed to take to task the real culprits — hoarders of sugar and flour, who created an artificial shortage of these items last month. An across-the-board accountability for all without fear or favour is the only panacea to all the ills that our society faces today.

Cdre (r) Sajjad Ali Shah Bokhari
Islamabad

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WITH the outbreak of coronavirus, oil prices in international markets continue to tumble. Pakistan has been facing the chronic challenge of a current account deficit.

The declining oil prices in the international market because of coronavirus offers a good opportunity for countries like Pakistan to manage its macroeconomic problems.

Cutting down in oil prices will make a dent in the worsening circular debt. Lowering the oil prices will cut down increasing cost of energy.

The government and the State Bank of Pakistan must plan for an expansionary economic policy to generate economic activities. This is the right time to cut down discount rate and increase money supply in the market to ensure economic stability and growth rate.

The IMF has recently announced a $50 billion package to countries badly affected by the fast spreading epidemic.

Therefore, Pakistan – which closely works with China, the epicentre of the epidemic — has valid reasons to renegotiate the terms and conditions with the international monetary watchdog.

Syed Furqan Ali Shah
Rohri

Published in Dawn, March 17th, 2020