Islamabad: Finance Minister Miftah Ismail announced Thursday a massive hike in the price of petroleum products after the International Monetary Fund stressed lifting subsidies.
In the press conference, the finance minister said the government has decided to hike the price of diesel, petrol, kerosene oil, and light diesel by RS30, finally from May 27.
The finance minister noted some burdens had to be shifted onto the people. Still, despite the increase in the price of petrol products, the government was, even so, bearing losses but agreed to strike a staff-level agreement with the fund soon.
Pakistan and IMF could not reach a staff level a day already after the global bank said there were changes in the policies that were agreed upon between both sides.
The PTI-led government had agreed to the IMF’s demand to raise the price of electricity and petroleum products. In March, Imran Khan announced the subsidy on both products, and the current government was keeping the same arrangement. The finance minister noted that following the agreement to hike the prices, financial markets would prove establishment, the rupee would strengthen, and the economy would boost.
In response, Ismail said a hike would happen in other markets as a result of an increase in the price of petroleum products.
Ismail said Khan was going against the IMF and had announced subsidies on petroleum products when his government’s term was ending.
The finance minister said we are all the owners of our country. So how can we provide something that costs three times more than running the everyday dealings of the government?
Ismail said it was unjustified to the lower-income segment of the society that the people who own industries, cars, and generators, are enjoying subsidies.
Indeed, this is the failure of the government. The hike is rising, but we have provided subsidies on products at utility stores and are making sugar available at a lower cost than Imran Khan’s government.
Ismail said increasing the price of petroleum products by Rs30 was not an easy agreement for Prime Minister Shehbaz Sharif. Still, he promised that the government would take steps to safeguard the economy.
Pointing to the defense minister, Ismail said, Khawaja Asif, in today’s talk, noted that it would not be a wise opinion to damage the state and protect our politics.
The finance minister emphasized that the present government would present a financial budget for FY 2022-2023 and ruled out the formation of a caretaker government, noting that the current set-up would complete its tenure.
