A smart response to oil shocks

Pakistanis are once again confronting a familiar shock: a sharp, drastic rise in fuel prices. At the pump, it feels immediate and personal, but the real story of petrol prices runs much deeper. Energy prices are not just a cost for motorists; they are a central artery of the economy. Energy prices function much like blood pressure in the human body. If they rise too high, economic growth slows. If they are artificially suppressed for too long, fiscal deficits and debt begin to rise. The chall...

By [email protected] (Ziad Bashir)