By creating a dependency on subsidies and artificially controlling fuel prices, the government set unrealistic expectations among the public, leading to a harmful economic situation. Instead of allowing market forces to dictate fuel prices, the government intervened, causing distortions and making the economy vulnerable to global price fluctuations. The IMF’s involvement only highlights the extent of the government’s economic mismanagement. To break free from this vicious cycle, Pakistan needs leaders who prioritise economic stability over short-term political victories. The government must abandon the dangerous practise of subsidising fuel prices to garner public support.

Source: The Nation August 01, 2023 21:16 UTC