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ISLAMABAD: Minister for Finance and Revenue Shaukat Tarin said the increase in petroleum prices is caused by higher oil prices in international market and the government passed on minimum increase in prices to consumers.
Talking to media along with Minister of State for Information and Broadcasting Farrukh Habib, the finance minister said the government was absorbing impact of the decade’s highest price-hike to provide relief to people through various measures including direct food subsidy.
The minister said the government absorbed the pressure of rising prices in international market by bearing the burden of two billion rupees. However, he said Pakistan as an oil importer is also impacted by global oil prices due to the COVID-19 pandemic.
Shaukat Tarin said Pakistan stands at 17th position in respect of oil prices in the world, and the countries where prices are lower than Pakistan themselves produce oil. He said petroleum prices in Pakistan are the lowest in the region.
He said that the government wanted to reduce prices as it had already slashed the petroleum development levy from Rs30 in 2018 to just Rs2.5 per litre. He added that the government had budgeted Rs600 billion from petroleum levy, which could be affected as the prime minister wanted to provide relief to people.
He said direct subsidy will be provided to the deserving people on essential items like flour, ghee, sugar and pulses. He said that the government would also provide direct food subsidy to 12.5 million families which constitute around 44 percent of total population.
Shaukat Tarin said economy is growing with positive indicators of growth in agriculture, industry, services and revenue collection. He said agriculture is also being focused to grow food items locally to meet the demands.
He said the government would soon launch Kamyab Pakistan Program in line with Prime Minister Imran Khan’s vision to make Pakistan a welfare state. He said under the program, interest-free loans will be provided to farmers and urban citizens. He said a member of each deserving family will be provided skills and Sehat Cards will be provided across the country.
To a question, the minister said that the government would sincerely negotiate with International Monetary Fund (IMF). He said that we had promised to collect revenues of RS5.8 trillion and the collection numbers till date show that the target would be exceeded.
He said there were certain challenges faced in power sector, however, enhancing tariff rates as advised by the IMF was not a solution to the issue and they would like the global financial institution to provide space in this matter.
