KARACHI
Senior economist, Dr. Kaiser Bengalli appreciative of marked reduction in the cost of petrol by 9.1% largest in past many year’s time, has suggested review in the current practice of price revision of petroleum oil lubricant products on fortnightly or monthly  basis.
Talking to APP on Saturday, he said it would be appropriate that government announces fixed rate of POL products, on basis of average global market rate, say $ 100 per barrel, coupled with establishment of a fund, so that rates when below $ 100 per barrel in the global market would help collection of funds, providing required cushion to the local consumers i.e. people in general, during any increase in the international rates.
This fund, he said would also be equally beneficial to buffer impact of any rupee depreciation or increase in cost of dollars on pockets of the masses.
In reply to a question Dr. Bengalli said one single factor can not make any dent in the inflation as economy that may have already absorbed price rise of different products over the years can not register down-ward effect on cost of living as such. “Government must be keen to get the cost of living slashed as this would benefit the masses but we have to understand that there are always several factors that influence inflation and unfortunately there is a stickly response as once prices go up, due to any reason, will not come down as there are other associated factors too ,” elaborated the senior economist. Moreover, he said price impact also comes after the “lag” that is one step lag in next quarter or so and not immediately.
Dr. Kaiser Bengalli said the government, to establish its sincerity, can also immediately reduce the current 17% GST rate on manufacturing sector, which is very high as there is also a five per cent GST they are made to pay on use of electricity.
This has thus brought Tax:GDP ratio for manufacturing sector to 22% , consequently leading to closure of many of the industrial  units, growing unemployment, reduction in exports, said the economist with the hope that PM keen to provide relief to the masses would take into consideration all relevant factors for economic empowerment of the people.