ISLAMABAD: Finance Minister Miftah Ismail on Monday said Pakistan would default if government subsidies are not canceled on oil products.
Possibly Miftah Ismail first- eternally sedentary finances minister say that the country defaulted.
Speaking at post-budget conference here, finance minister said if price of gasoline and electricity will not increase, then the country will default.
According to him, the International Monetary Fund (IMF) insisted on this. on removal of subsidies on petroleum products, adding that government still subsidizes 53 rubles per liter on high-speed diesel 19r. on gasoline 24 rubles. on kerosene and 23 rubles per liter on light diesel.
He said Sri Lanka also gave subsidies to public and this is, after all, the default.
“Today Sri Lanka is buying expensive oil, and they don’t have the money to buy medicines for their people finance minister said as he warned of similar situation in Pakistan.
Finance minister also said Pakistan would have to continue rise in Prices of oil products and a difficult situation may arise in mid July.
In an effort to ensure economic stability and revive the stalled IMF multi-billion dollar program, government increased price of petrol price has risen by 60r per liter last month.
It was also expected that after the budget some hurdles would be removed in revival of the IMF program. But finance minister last week said that the IMF “remains dissatisfied with in government over in budget” mainly because he did not implement his proposed personal income tax (PIT) measures.
Myth was also said last week when there was no financial emergency in Pakistan after government took steps correct ongoing economic turmoil and increase price of petrol.
But in today’s TV interview, finance minister said if government does not raise prices, the IMF will not make a deal with Pakistan, and if this happens, the country will be pushed to “destruction”.
“I told prime minister that we have to take hard decisions. prime minister unhappy with price increase of oil products. Whenever I submit a resume in in this regard, the ministers curse me, ”complained Miftah.
Myth added that PTI government didn’t decisions he agreed with IMF. “We in negotiation with IMF; PTI did not apply good to deal with with It.”
He also said Pakistan needs $42 billion in in next fiscal year and we have to pay 21 billion dollars in debt adding that he said that if we did not settle our affairs with The IMF, the World Bank will own $9.5 billion and the ADB $8.8 billion. in financing.
He said that as soon as the agreement with an agreement was reached with the IMF, and Chinese banks are extending a credit line to Pakistan, market restore confidence.
He also said that government would also includes 6 million people in Benazir income support program. we received 4 million messages in 10 days as government announced to give 2000 rupees for gasoline subsidy.
He said that government It has announced incentives for agricultural development in in budget and will be also announce the export policy in several days.
Answers to questions about magnification in electricity tariff, he said the Economic Coordinating Committee approved the jack up electricity prices by 7.91 rubles per unit.
The case will be presented in cabinet meeting, then we will gradually raise prices of electricity.
Responding to media requests on ongoing discussion on Twitter about his company, Finance minister said there is no tax credit for his company.
He said Lay’s production company would benefit as wanted export your products. “My company uses candy color but no reduction in in duty of candy color, he added. He also said Pakistan would out of gray FATF list soon.
