Previously, demand for oil was drastically decreased due to the rise in the prices of crude oil. After the storm was downgraded to a tropical depression, oil market traders quickly turned their attention to slowing global economic growth. It is speculating that demand for crude oil will be dampened even in rapidly expanding economies of China and India, which traders surely do not want.
How this scenario would influence Pakistan’s economy?
-It would affect Pakistan’s economy only if the situation would persist for two weeks. It is expected that oil-producing countries are going to adopt some measures for price stabilization.
-If prices remain at this level or decrease further, Govt. would be able to fulfill its deficits by taking back the oil subsidy.
-If Govt. decides to transfer this relief to public, the prices of oil and its products would definitely decrease and its trickledown effect would leave a healthy impact on Pakistan’s economy.
-Prices of electricity would come down.
-Prices of chemical fertilizers would fall which in turn would decrease the prices of agro-based products.
Oil is the axis of whole economy. Lets see what would be the scenario in coming days.
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