ISLAMABAD: Pakistan’s Finance Minister, Miftah Ismail, announced a huge increase in the price of petroleum products on Thursday, after the International Monetary Fund (IMF) emphasised the elimination of subsidies on basic commodities.
The finance minister announced at a news conference that the government has decided to increase the price of fuel, diesel, kerosene oil, and light diesel by Rs30, effective May 27.
New Petrol prices in Pakistan(per litre):
| Petrol | Rs179.86 |
| Diesel | Rs174.15 |
| Kerosene oil | Rs155.56 |
| Light diesel | Rs148.31 |
The finance minister acknowledged that some of the burden had to be pushed to the people, but that the government was still losing money despite the large increase in the price of petroleum goods. He promised that a staff-level agreement with the Fund would be reached soon.
A day earlier, Pakistan and the IMF were unable to achieve an agreement at the staff level after the global lender stated that there were deviations from the policies agreed upon by both parties.
The PTI-led government first agreed to the IMF’s demand that power and petroleum products be raised in price, but Imran Khan announced subsidies on both commodities later in March, and the present government is continuing with the same arrangement.
Following the decision to raise prices, the finance minister stated that financial markets would be stable, the rupee would appreciate, and the economy would benefit.
In response to a query, Ismail stated that inflation would undoubtedly rise due to an increase in the price of petroleum goods.
“But tell me, if we hadn’t taken this step, what other options did we have?”
The PTI-led government had first agreed to the IMF’s demand that power and petroleum products be raised in price, but Imran Khan announced subsidies on both commodities later in March, and the present government was continuing with the same arrangement.
Financial markets will be stable, the rupee will strengthen, and the economy will benefit, according to the finance minister.
In response to a query, Ismail stated that inflation will almost certainly rise due to an increase in the price of petroleum products.
“But, tell me, what other options did we have?”
Ismail said Prime Minister Shehbaz Sharif’s decision to raise the price of petroleum goods by Rs30 was difficult, but he promised that the present administration will take steps to protect the economy.
“Khawaja Asif sahab, in today’s meetings, emphasised that it would not be a prudent move to destroy the state and save our politics,” Ismail added, quoting the defence minister.
The finance minister emphasised that the existing government would present the fiscal budget for FY2022-2023 and ruled out the formation of a caretaker government, stating that the current administration would finish its term.
Nation to ‘suffer another massive dose of inflation’, says Imran Khan
PTI Chairman Imran Khan slammed the Shehbaz Sharif-led government for raising petrol prices, saying the country would “suffer another enormous dose of inflation at the hands of this cabal of crooks.”
“With a 20 percent / Rs30 per litre spike in petrol and diesel prices – the greatest single price hike in our history,” added the PTI chairman, “the nation is starting to pay the price for our government’s subservience before foreign rulers.”
Nation starting to pay price for Imported govt's subservience before foreign masters with 20% / Rs30 per litre hike in petrol & diesel prices – the highest single price hike in our history.The incompetent & insensitive Govt has not pursued our deal with Russia for 30% cheaper oil
— Imran Khan (@ImranKhanPTI) May 26, 2022
While labelling the current administration “incompetent and insensitive,” the former prime minister chastised them for failing to follow through on a 30 percent cheaper energy deal negotiated by the previous administration with Russia.
“By purchasing cheaper oil from Russia, India, a vital ally of the United States, was able to lower fuel prices by Pkr 25 per litre.” “Now, thanks to this gang of fraudsters, our country will be subjected to yet another enormous dosage of inflation,” Imran Khan remarked.
