Snippets of Election Speech
Feeling the heat, the political head of the country swung into action initiating a flurry of political activity. During the Election speech process, he threw caution to the wind and announced a fantastic economic concessionary package that smacks of pre-election tactics. Apparently showing scant regard for the tough conditionalities of the IMF the so-called relief measures appear to be the classic case of too little, too late. Intriguingly, the decision to cut petrol, diesel, and electricity prices came on the eve of the IMF review and many wonder what will be the outcome of these talks because these concessions are in complete conflict with IMF’s position. The general impression is that the measures announced may neither prove popular nor sustainable. As usual the measures appear to be an eyewash as only last month the petroleum prices were raised by Rs.12 per litre and now reduced by Rs.10 still retaining a factual increase of Rs.2 per litre. Similarly, the electricity price hike announced last month was Rs.5.94 per unit that has been reduced by Rs.5, retaining almost one rupee increase. Moreover, these concessions will be financed through borrowing with the result that the common man will end up bearing their cost. TW
