- Stability in agri sector and reduction of diesel prices can help to reduce inflation
Stability In Agri Sector And Reduction Of Diesel Prices Can Help To Reduce Inflation
Umer Jamshaid 11 days ago Sat 15th February 2020 | 03:44 PM
Secretary General (Federal) of the Businessmen Panel, Ahmad Jawad saidstrongmeasures to improve agriculture sector and reduction of diesel prices can help to reduce theinflation after a blunder of massive devaluation
Karachi (UrduPoint / Pakistan Point News / Online - 15th February, 2020) Secretary General (Federal) of the Businessmen Panel, Ahmad Jawad saidstrongmeasures to improve agriculture sector and reduction of diesel prices can help to reduce theinflation after a blunder of massive devaluation.Talking to presser, he said country economic managers needs to be realistic, to reduce theinflation IMF recommendations were not the only solution, we should come out from the balancesheets phenomena , our strategy should be field oriented.He demanded government immediately announce the support price for cotton and production ofpulses so that farmers may get incentivise, similarly reduce the taxes on diesel fuel becausecurrent price of diesel is hitting the masses."I recalled few years back diesel prices were lower than petrol but due to imposition ofunrealistic taxes on this fuel to achieve the tax targets would hit public drastically till now".Jawad also stated until and unless rupee cannot be stable the shocks of inflation may bewitnessed time to time except some out of box solutions by the incumbent government asinflation cannot be controlled but putting few bucks for Utility Stores.
"the weakening currencyimpacted the consumers' purchasing power as devaluation fuelled inflation."With devaluation, there is inflation, when there is inflation, your disposable income goes down,which affects consumption behaviour and spending power.
There is a decline in aggregatedemand, which is why there is an economic slowdown.He questioned what we achieved after weaken the rupee? in which economic term where isstated that what will be the criteria to determine the real value of Dollar.
It's basically a mythnothing more and it's a tactics of IMF to pressurise the third world countries because they cannotafford to strengthen their local Currency.That's why our economists presents their different formula's which mostly basis on theoreticalcalculations; he lamented.