After consuming 2700 billion every year to control inflation, today the Prime Minister came to know that taxes and levies on petrol and electricity have to be reduced to control inflation. This is what I have been asking for the last three years.

Why does the Prime Minister have to impose so many taxes and levies? This is because the SBP has kept the policy rate much higher than the policy rate of other peer economies, due to which a huge amount of money has to be paid as interest. Taxes and levies have to be levied to pay this interest.

So the solution to the problem is to bring the policy rate to the level of peer countries like Bangladesh, Thailand or Vietnam. The markup payments will reduce, levies will reduce and inflation will also be controlled.

Prime Minister understood the issue, but only partially. I wish the whole thing to be understood, and the day when the whole thing is understood, the economic problems will be solved automatically

Written by:
Dr. Atiq-ur-Rehman