CJ wants to micromanage economy?

[Shamraz_Khan]

In any other country this guy would have been impeached jailed by now.

Profit rate on CNG and linkage of price to that of petrol illegal: SC | DAWN.COM

Profit rate on CNG and linkage of price to that of petrol illegal: SC
DAWN.COM | 2 hours ago 0

A two-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry resumed the hearing on Thurday. — File photo

ISLAMABAD: During Thursday’s hearing of the case on petroleum product pricing, the Supreme Court of Pakistan declared the profit rate and operating costs on Compressed Natural Gas (CNG) as illegal, DawnNews reported.

A two-member bench of the apex court headed by Chief Justice Iftikhar was hearing the case.

The court declared that the profit of Rs 10 per kilogram on the price CNG and the linkage of CNG price with that of petrol was illegal.

During the proceedings, Petroleum and Natural Resources Secretary Waqar Masood told the court that the weekly pricing mechanism for petroleum products had been suspended until the Economic Coordination Committee (ECC) of the cabinet had given its decision.

In his remarks, Chief Justice Iftikhar said that Compressed Natural Gas (CNG) stations earned a per kilo profit of Rs 11.91, adding that, the price of CNG should not be linked with that of petrol and that the 50 per cent profit margin on CNG was strangulating the consumers.

Moreover, Oil and Gas Regulatory Authority (Ogra) Chairman Saeed Ahmed Khan submitted a report on the details of petrol and CNG pricing.

After reviewing the report, Chief Justice Iftikhar remarked that overcharging for CNG was tantamount to exploitation of consumers.

According to the Ogra report, the government’s procurement cost of CNG in Region 1 was Rs 19 per kilogram whereas the per kilogram price of CNG in Region 2 was Rs 17.57 and that the government decided on the price after including development surcharges.

The chief justice moreover inquired as to why the government was charging an exorbitant amount on the pretext of operating costs and said that exploitation of consumers would not be allowed.

[kakaballi]

Re: CJ wants to micromanage economy?

In any other country, our whole cabinet including with the Rental Prime Minister would be in jail now. When these guys are bent upon macrodamaging the economy, someone has to make some efforts (micromanage as you say) to take corrective actions.

[muqawwee123]

Re: CJ wants to micromanage economy?

why in jail for addressing issues affecting public?

[kakaballi]

Re: CJ wants to micromanage economy?

@muqawwee123

why in jail for addressing issues affecting public?

CJ is damaging the Swiss economy.

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

@kakaballi

In any other country, our whole cabinet including with the Rental Prime Minister would be in jail now. When these guys are bent upon macrodamaging the economy, someone has to make some efforts (micromanage as you say) to take corrective actions.

Macrodamaging the economy? The economy is driven by demand and supply & not by populist decisions of a judge who wants to act like a politician from the bench. What is next? Is he going to set the price or parking meters?

[muqawwee123]

Re: CJ wants to micromanage economy?

@kakaballi

CJ is damaging the Swiss economy.

so nice of you. I really couldn’t understand this jail link without your help

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

@muqawwee123

why in jail for addressing issues affecting public?

That is not job of the SC.

[muqawwee123]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

Macrodamaging the economy? The economy is driven by demand and supply & not by populist decisions of a judge who wants to act like a politician from the bench. What is next? Is he going to set the price or parking meters?

I heard that OGRA is not authorised to fix CNG prices, because its not technically covered under Petroleum products. Why the government allowed OGRA to fix prices in such manner?

[muqawwee123]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

That is not job of the SC.

Providing relief is also not the job of government. They are here to confiscate people's 'roti, kapRa aur makaan'

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

^^^ Let it free float & let international demand & supply dictate the prices like everywhere else.

[kakaballi]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

^^^ Let it free float & let international demand & supply dictate the prices like everywhere else.

Yes, that is what CJ is trying to do. If the economy was driven by demand and supply, the price of (locally produced) CNG would not be linked with (imported) petrol and would settle depending on demand and supply.

The weekly changes in the prices of CNG and regulation was illegal (and against free market which you are trying to promote) to begin with and CJ is trying to correct it. The supreme court is not setting the prices, but has objections on senseless regulations aimed at benefiting the hoarders and speculators.

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

@kakaballi

Yes, that is what CJ is trying to do. If the economy was driven by demand and supply, the price of (locally produced) CNG would not be linked with (imported) petrol and would settle depending on demand and supply.

1) Pakistan does not produce enough CNG to meet its demand.
2) How would you separate CNG (imported vs locally produced) and determine the price?

[quote]
The weekly changes in the prices of CNG and regulation was illegal (and against free market which you are trying to promote) to begin with and CJ is trying to correct it. The supreme court is not setting the prices, but has objections on senseless regulations aimed at benefiting the hoarders and speculators.
[/QUOTE]

CNG/Oil, etc., are commodities and their prices change daily & not weekly based on demand and supplies. What the court is trying to do is in fact to set prices and it will have long term negative impact on the economy.

[muqawwee123]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

1. Pakistan does not produce enough CNG to meet its demand.
2. How would separate CNG (imported vs locally produced) and determine the price?

CNG/Oil, etc., are commodities and their prices change daily & not weekly based on demand and supplies. What the court is trying to do is in fact set prices in will have long term negative affect.

Pakistan imports CNG?? then why so many strikes (2 days a week)?

[kakaballi]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

1) Pakistan does not produce enough CNG to meet its demand. 2) How would you separate CNG (imported vs locally produced) and determine the price?

You did not read, did you. The price of CNG was linked to imported OIL. That doesn't make sense and is against your favorite free market mechanisms.

CNG/Oil, etc., are commodities and their prices change daily & not weekly based on demand and supplies. What the court is trying to do is in fact to set prices and it will have long term negative impact on the economy.

Yes, please have the markets determine prices. Remove the regulation, which the court is trying to do.

You are clutching on straws here Shamraz. If you are for free markets, and want the prices to be determined based on demand and supply, you should be in favor of an action that removes regulation interfering with free market mechanisms.

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

@muqawwee123

Pakistan imports CNG?? then why so many strikes (2 days a week)?

I guess people have nothing better to do? But that is beside that point. The point is court interfering in economic matters. If the CJ wants to be populist he should run for a political office instead of using the court to play politics.

[muqawwee123]

Re: CJ wants to micromanage economy?

If this interference results in a relief for consumer than its more welcome IMO. Why we raise question of 'through proper channel' when it comes to public relief, when we don't follow the same for issues like corruption?

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

Here is one more example How would govt raise revenue to provide services that people demand?

LHC suspends govt notification on international calls tax hike | DAWN.COM

LAHORE: The Lahore High Court (LHC) on Thursday suspended the notification issued by the federal government for tax increase on incoming international calls, DawnNews reported.

Justice Ijazul Hasan heard the case at the LHC.

During the hearing, the petitioner’s counsel informed the court that the new tax imposed on incoming international calls caused serious concern among overseas Pakistanis.

The counsel moreover requested the court to restrain the government from implementing the tax.

The bench remarked that the government continually came up with new taxes which was resulting in more difficulties for the people. The bench added that the courts would prevent the government’s injustices against the people.

The court then suspended the federal government’s notification to increase taxes on incoming international calls.

Moreover, the court directed the Pakistan Telecommunication Authority (PTA) to file a reply on the matter in the first week of November.

[kakaballi]

Re: CJ wants to micromanage economy?

^ I agree with you on this one. Courts should have no authority on taxation matters (unless the tax regulation contravenes other laws).

[muqawwee123]

Re: CJ wants to micromanage economy?

@Shamraz_Khan

Here is one more example How would govt raise revenue to provide services that people demand?

Government is meeting its targets of revenue collection (which are on unrealsitic side) by pressurizing taxpayers? What has been the usage of that tax money? infrastructure or ayyashi of foreign trips?

[Shamraz_Khan]

Re: CJ wants to micromanage economy?

^^^ Its hard to argue with logic like yours. In that case, what is the use/point of govt?