Fuel Price Dilemma Raises Pressure On Government

摘要

BMI View: Pressure to abandon the latest fuel-price rise will force the government to decide whether it prefers to proceed, risking higher infation and domestic opposition, or to relent, further deepening its budget defcit and angering the US and IMF. Pakistan has increased fuel prices across the board, with diesel prices rising by as much as 11.8%, in response to a growing budget defcit. Previous fuel-price rises have proved unpopular and the latest increase has reportedly drawn the opposition of almost all the country's political parties. Following a political campaign in January 2011 that forced the government to ditch the frst price rise of the year, pressure is now mounting on the fragile coalition government to pull back on the latest increase.