SYED MOHAMMAD TAHIR After immense pressure by political and civil society, history was created when, for the first time after the inception of Pakistan, Gilani government had to roll back its decision regarding raise in POL prices. Though the PPP-led government was elected democratically and the parliament was supposed to be independent in taking decisions on national issues but the pity was that US Secretary of State, by indulging herself illegally and immorally in the internal affairs of Land of Pure, stated that revoking POL prices hike was not justified as burden of loans on government would increase manifolds while adding fuel to the fire, International Monetary Fund (IMF) also flayed governments decision and suggested that fuel subsidies should have been relinquished. The global financial institution further suggested that it would have been better that money was spent on countrys social programmes, terming these subsidies are inefficient and untargeted. The benefit of energy subsidy goes to higher income individuals and large companies rather than the common man, said IMF, threatening that annulling POL prices and continuing subsidies could derail the coming installments of IMF loan. It is to be noted that IMF has approved $11 billion loan for the uplift of contracted Pakistan economy that makes 'painful economic reforms. The fact is that this cancellation of POL prices hike was the result of the Oppositions pressure, which challenged government to hold a referendum in parliament on this issue. The political pundits were of the view that by foreseeing clear defeat in the parliament, the government had no option left but to withdraw raise. So PM Yousuf Raza Gilani, after consultation with political allies, announced in the parliament that he is revoking POL prices in respect of wishes of the parliament and masses. It was a good omen that awareness amongst masses regarding their rights was increasing day after day and 'friendly opposition, for the first time, had to take a firm stand against the price hike and inflation. Withdrawal clearly suggests that no government can sustain power against the wishes of people. The American involvement in the internal affairs of Pakistan can be gauged by Hillary Clintons statement in which she said that Pakistans government has taken 'wrong decision of annulling POL prices. Had Gilani government been independent and sovereign in taking decisions on national issues like Indian and Malaysian governments, Hillary Clinton would not have dared to poke her nose in the internal affairs of Pakistan. Now, it is right time that government should take cognizance of US interference and warn the US that our government is not a puppet one and can take decisions independently. The pity is that very next day of Hillarys statement, Federal Minister for Petroleum Naveed Qamar, in a bid to please US government, cautioned that POL prices might be increased (rather doubled) again at the end of January. It was imperative that the government spokesman should have issued a statement dispelling Naveed Qamars impression and strongly condemned Hillary proclamation so that people could have a sigh of relief. The spokesman should have also protested against her statement by announcing that fixing prices of petrol, diesel, gas, edible and common items across the country is the internal affair of Pakistan and government has constitutional right to do so. Therefore, no country or authority should nudge in Pakistans internal affairs. It is to be reminded that Pakistan linked its domestic oil prices with international oil prices in 2008 despite the fact that countrys economy was too weak for such a decision. Attaching local oil prices with international open market for developing countries like us could result in further swelling countrys fiscal deficit as political instability and fixing oil prices once or twice times in a month could have bad effect on countrys economy. Though local independent analysts are of the view that reversing POL prices was regressive and there was no justification for doing so but the ground realities are that people have no more capability to bear more jolts of inflation. The analysts further frightened the public by analyzing that decision to reverse POL price hike means that government will have to provide further subsidy to the tune of Rs 5 billion per month that could widen budget deficit by as much as 0.2 to 0.3 per cent of Gross Domestic Product (GDP) in 2010-11 fiscal year. The suggestions given by the American government, IMF and independent analysts might be right but ground realities suggest that the government should take only such decisions as are in the interest of common man and take measures to provide sound foundations to countrys treacherous economy. It is true that no country can survive by detaching herself with other countries, as the world has become a global village now. But following the footsteps of developed countries to attach oil prices with international open market without having sound economy could further tumble countrys wobbly economy.