Fragile Economy of Pakistan pushes higher oil prices

Pakistan is at a very sensitive juncture in its tenure of a nation. It has been in the limelight for the last one year due to its geared up involvement in the war against terrorism. Pakistan has lead its armed forces into its northern areas to combat against militants. The aftermaths have been devastating. Hundreds of innocent people have died and several key religious scholars shot at point blank range. And on top of that the economical cycle has come to a complete standstill. India has stopped the water into the country and the government has recently raised the oil prices.

Oil prices have played a pivotal role in demoralizing the masses. Pakistan has overpriced their oil as compared to other countries since this is a major source of income. Several governments of the past have abused their powers and exponentially increased the sales tax applied to oil. Pakistan has been paying 75% more on oil as compared to the import by the government. This was to facilitate the massive expenditures of the government and the comparative variance in objectives.

Currently, the entire food and textile industries that have been the major backbone of the financial institutions has completely shut down leading the government no choice except to increase prices of already and mandatory items. This step has not only devastated the masses but has left millions in search of second jobs and even attempts of suicide.