Wheel Of Fortune

The Fuel Price Situation

A few days ago, the Khyber Pakhtunkhwa (KP) Provincial Government held its Annual Development Program 2016-17 (ADP) conference in Islamabad, to discuss the various objectives that the Province must achieve during the upcoming fiscal year. While such meetings are undoubtedly important in a dozen different ways, what a financial expert would find most interesting would be the new policy pertaining to the crackdown against fraudulent enterprises that masquerade as either car-rental services or driving schools. The reason this strategy is so striking is because it represents the very essence of competent economic management: Personalizing the solution to the problem & the region, instead of fishing stock responses out of a moth-eaten textbook like some senile accountant who hasn't quite accepted the fact that things have changed dramatically since his youth, when the wheel had just been invented.

But this policy, if implemented with focus & commitment, is likely to bring about another advantage: It will discourage the artificial demand for fuel in the market. That is a good thing because all that the crash in global oil prices has achieved in Pakistan during the last few years is an occasional perky press statement from the Finance Ministry to the effect that, "fuel prices will remain unchanged for 1 month & after that we're sure you folks won't be upset if you go bankrupt the next month, making up for the 30 splendid days you just enjoyed." If the vagabonds who conduct various illegal businesses under the cover of the aforementioned shell corporations are prevented from doing so, the consequences are bound to be positive for KP's - & Pakistan's - fuel economy situation.

In addition, considering that the China Pakistan Economic Corridor (CPEC) is finally progressing rather smoothly, & the Torkham Border closure has been remedied (at least, for now), policies that limit the consumers of transport-related services to the law-abiding segment will not only improve things in the present, but also make a very positive difference to the future financial & economic valuation of KP for many years to come.

No Place Like Home

The ultimate litmus test of an intelligent government policy is not only the positive results it yields but also the number of qualified outside parties it convinces to take interest in the policy (& the region), be they analysts or investors. This particular policy is indeed one of the more effective ideas currently making the rounds in the local papers these days. With the aim of rendering it even more productive (& consequently more attractive to both domestic & foreign investors), there is one more step that can be taken by the KP Government:

While there is no doubt that committed public servants & competent professionals are instrumental to the production of a successful plan of development & progress, it is the common man who works every day to bring even the most well-designed plans to fruition. Without his willing cooperation, even the best-laid plans can end in nothing (best case scenario). Therefore, ensuring the peace of mind of the working class is imperative to the success of any project. KP is a very family-based society; every sane adult is unofficially judged first for what he or she is worth in his or her home & then other factors are taken into account. When it comes to the working class of KP, the prime priority is to be as close to their family homes as possible. In other words, it would be very wise to ensure as far as possible that each Government worker is assigned to jobs within his city of residence, so that he has the chance to spend time with his family at least once a week & to be available at all times should the family need his assistance at short notice.

This policy will have the following positive effects:

(1) When fewer people will be assigned to jobs far from home, it will be easier to starve illegal auto businesses of customers & credibility.

(2) When the majority of the people in any given city are genuine residents & have family within that city, they are less likely to indulge in lawlessness.

(3) The satisfaction of the working class being able to watch over their family will be a great source of motivation towards producing quality work.

Hearts & Minds

Amidst the illogical or just irrelevant references to everything from offshore companies in places where the Pakistani legal system has little or no sway, to the bitter-sweet offers of temporary (& ultimately futile) fuel price reductions, cluttering the Pakistani newspapers nowadays, the KP auto sector strategy, as it has been described at present, is just about the only interesting thing in the news. As underlined earlier, if the Provincial authorities are allowed to carry out the policy without interruption or interference, it would yield impressive results. But those results could ascend to the level of phenomenal, if the common man's most heartfelt desire - to be allowed to live with his family while earning an honest living - were to be taken care of at the same time.