As time passes, the PML-N government’s decreasing ability to effectively tackle long-persisting crises and problems seems to be dampening businesses’ and investors’ sentiments.
If the government fails to act fast, the shrinking job market and the rising cost of living may generate more discontent and further complicate the political, economic and social challenges it is facing right now.
The country’s business community, earlier seen as a strong constituency of the PML-N, is grumbling over the slow progress in the settlement of tax refund cases, ineffective handling of the energy deficit, expensive bank credit lines and state measures that are escalating the cost of doing business in a high-risk investment environment.
The only good thing appears to be the fall in international prices of oil with its windfall gains for the economy, as it is cheaper energy that can help fuel growth. Since June, oil prices have fallen by as much as a quarter globally. By the end of last week, crude oil was reported to be around $86 a barrel. Oil analysts expected that this would bring down the country’s oil bill by a whopping $3bn during the current fiscal.
