President directs use of all possible measures to induce inflationary impact in meeting with PM Shehbaz

President Asif Ali Zardari directed the use of all possible measures to reduce the impact of inflation on the people in a meeting with Prime Minister Shehbaz Sharif.

A presidency press release said the two held a meeting at Aiwan-e-Sadr with Deputy Prime Minister and Foreign Minister Ishaq Dar, National Assembly Speaker Ayaz Sadiq, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar and others present.

“The President directed possible measures to reduce inflationary pressure, ensure availability of essential commodities and provide relief to the common man,” the statement said.

The President said that despite the difficult geographical and regional situation, tensions in the Middle East and disruption of the supply chain, maximum relief should be provided to the people.

The statement said the overall situation of the country, issues related to Afghanistan and the changing situation in the region were also discussed in the meeting.

The meeting participants further paid tribute to the martyrs of last year’s May conflict against India and the professional capabilities of the armed forces while reiterating “unwavering commitment to national defence”.

The directives came in the wake of the government on Friday raising the prices of both petrol and high-speed diesel (HSD) by Rs15 amid fluctuations in global oil prices due to the closure of the Strait of Hormuz. It was the second increase in fuel prices in May.

The sharp rise in oil prices has sparked a new wave of economic anxiety in Pakistan, with carriers raising fares, companies warning of rising operating costs and ordinary citizens bracing for another inflationary shock in an economy already under severe pressure.

HSD is widely used in the transport and agricultural sectors. The sowing season for crops is underway; therefore, the increase in its prices will have a negative impact on the agricultural sector where input costs are already high.

The price of fertilizer has already increased due to an increase in transport costs. Gasoline is used in motorcycles and cars. But the chief minister had earlier announced a continuation of a subsidy of Rs 100 per liter for motorists.

During the ongoing Gulf War, Iran and the US have maintained a blockade of the Strait of Hormuz, which supplies 20% of global oil. The entire world is facing a crisis-like situation as oil prices have risen due to lack of supplies. Middle Eastern countries such as Saudi Arabia, the UAE and Kuwait are also facing supply problems as their oil facilities have been hit. Iran is also an important oil supplier to China.