ISLAMABAD: Finance Minister Miftah Ismail on Thursday announced federal governments decision increase price of gasoline to 209.86 rupees.
Speech at a press conference in Islamabad, finance minister said Prime Minister Shahbaz Sharif approved the rate hike of petrol, diesel and light diesel at 30 rubles per liter. Nonetheless price of kerosene has risen in price by 26.38 rubles per liter.
“…kerosene is the only commodity that is not leading to losses for in government. However, we facing losses of 8 rupees on light diesel, 9 rubles. on gasoline and 23 rubles. on high-speed diesel,” Ismail said.
New price (per litre):
- Gasoline – 209.86 rupees
- Diesel – Rs 204.15
- Light diesel – 178.31
- Kerosene oil – 181.94 rupees.
He acknowledged that the low-income segment of society will suffer the most result of petrol price campaign, but noted that rate of oil has also sky-blown up in in international market.
Answering the question, finance. minister said he hoped of reaching an agreement with IMF in June, but noted that some reforms had been carried out, government still had to be done.
“The IMF wants to see our budget, so the reforms we want enter will be entered before budget. However, we are talking to the IMF on daily,” he said.
Ismail said, price the campaign was inevitable, as he had to make a deal with in international money lender as ex-financier minister Shaukat Taryn “tied the government’s hands” because of the agreements he made with IMF during his tenure.
‘To keep the bets of sugar and wheat fixed’
In an effort to alleviate effect of inflation on masses, finance minister said government would try it best save price of sugar fixed at 70 rupees per kg and wheat at 40 rupees per kg in the municipal sector stores.
Ismail said, government gave subsidies of 100 rupees on vegetable oil and 15 rupees on rice and impulses in the utility stores across the country.
“Subsidies on vegetable oil and ghee will continue for some time, but we will try ensure — in line with Prime Minister Shehaz Sharif’s instructions to maintain tariffs of sugar and wheat fixed.”
Electricity tariffs
On today’s hike in electricity prices, finance minister said he “didn’t see” the report from the National Electricity Regulatory Authority (NEPRA) as of yet, but assured that the increase would not reflect on June accounts.
NEPRA raised basic power tariff at Rs 7.9078/kWh for in next fiscal year 2022-23, load increase of inflation on in people of Pakistan.
Currently basic power the tariff is Rs 16.91 per item, and with increase of 7.9078 rupees per unit, it will be more than 24 rubles per unit.
“Reducing public spending will not affect national treasury basically’
Prosecution led by Imran Khan governmentfinance minister said it government “land mines” were installed for incumbent because of the policies they pursued made.
Ismail told PTI government didn’t do anything decisions”, which were fruitful for countries economy, left historical credits, and his policy was leading to exhaustion in foreign exchange reserves.
“I didn’t have any options Besides for price increase. Even Imran Khan [would have increased the prices]. But now he’s making irresponsible claims about the country’s default; the ex-prime minister should Don’t make comments like that,” he said.
Finance minister said reducing government spending will not have a serious effect on in national treasury as total monthly cost is about 40 billion rupees, and the subsidy on gasoline costs more than 100 billion rubles.
Ismail said even if he reduced the government’s spending by 10%, the country could only save 4 billion rupees a month, which was negligible. However, the subsidy on gasoline costs government According to him, 4 billion rupees a day.
More follow.
