President orders use of all possible measures to cause inflationary impact in meeting with PM Shehbaz

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

A press release from the presidency 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 also present.

“The President ordered possible measures to reduce inflationary pressures, ensure availability of essential goods 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 supply chain disruption, maximum relief must be provided to the people.

The statement said that the general situation in the country, issues related to Afghanistan and developments in the region were also discussed during the meeting.

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

The directives follow the government’s increase on Friday in prices of petrol and high-speed diesel (HSD) by Rs 15 amid fluctuation in global oil prices due to the closure of the Strait of Hormuz. This is the second increase in fuel prices in May.

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

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

The price of fertilizers has already increased due to rising transportation costs. Gasoline is used in motorcycles and cars. However, the Prime Minister had earlier announced continuation of a subsidy of Rs 100 per liter for motorists.

During the Gulf War, Iran and the United States maintained the blockade of the Strait of Hormuz, which supplies 20% of the world’s oil. The entire world is facing a crisis situation as oil prices have surged due to a shortage of supply. Middle Eastern countries like Saudi Arabia, the United Arab Emirates and Kuwait are also facing supply problems as their oil facilities have been hit. Iran is also a major oil supplier to China.