Of Oil Crisis
By the Editor

AMID pretext that over the past several months Pakistan did not pass on the oil price-hike to the people – despite burden of almost Rs.125 billion – a drastic increase in the price-index of petroleum products has eventually been inflicted – with the advent of the new month.

True that the national exchequer had to bear – what is phrased as subsidy – through support from borrowing and reducing the development expenses – yet the newest decision of increase in oil and its related products is bound to add still more fiscal problems and miseries for the populous – specifically the poor.

Towards the mid-week – the global oil prices have hit record high above $102 – on trade driven by a sliding US dollar and growing supply nerves ahead of key OPEC production meeting next week.

A very cautious output policy on the part of OPEC and continued demand growth in the US with rest of the emerging markets have led to higher prices and prima facie with no possibility of a U-turn.

Hence the future of energy availability at affordable cost has become an issue which needs to be deliberated and addressed predominantly by the developing countries including Pakistan – if at all they wish to maintain their economic growth with zeal and zest to improve the standard of living of their people.

The main reason was that the outgoing government was not willing to earn a bad name – as the inflation was at an all time high – resultantly the common man was suffering due to higher prices of food items.

Now that the elections in Pakistan are over and the economy – obviously is no more able to absorb the crunch of subsidy – the new government would be forced to take difficult and taxing decisions.

Amid the current scenario – the new set-up will have no option but to raise the prices of oil and electricity.

Eventually, another cycle of inflation would hit the masses and the industry – as transportation and production costs would go up.

By all means – the foremost question is as to what should be done to overcome the alarming crisis?

And pragmatically the only answer – which surfaces is – the optimal exploration of indigenous oil and gas resources on war footing with initiation of instant exploitation of alternative energy resources.

Of-course, endeavours like exploration is an expensive high risk venture and that too – despite advent of exceptionally advanced and sophisticated equipment.

Thus, it would be a most appropriate and tangible step – if the local and foreign oil exploration companies are given maximum incentives with tax holiday atop for a realistic period pf time along with safe, sound and secure environment for exploration in each vicinity of the country.

At the same time, we ought to gear up the exploitation and use of coal reserves along with solar and wind energy to reduce dependence on imported oil and instead we should meet our energy needs indigenously.

We think – this would be a most befitting measure to save the people from still more financial burdens as well as to make Pakistan self-reliant in all arenas – explicitly in this significant field – the Oil – with sincere determination to attain more zeniths of affluence – based on peace, progress and prosperity – for all times to come.●