ISLAMABAD:
Among the divisions within the PML-N over recent increase in in price of gasoline, finance minister Miftah Ismail on Tuesday announced that the oil tax will be further raised up from next month.
He also refused to change course of economic policy that pulled the country back from the edge of default.
“Can we start repeat mistakes and fight with IMF (International Monetary Fund), especially when economy showed signs of stability?” questioned the audacious financial minister referring to news conference.
He said with in media hours after facing criticism from his party Vice President Mariam Nawaz, as well as senior journalists for increase rate of petrol.
When asked if Maryam’s tweet was part of of a policy of playing ” good policeman and bad policeman” and whether government continue to increase taxes in line with the agreement with the IMF, Miftah replied: “The gasoline levy of 10 rupees per liter will increase by 100%. [It will] will happen from September 1, will I stay [the finance minister] or not.”
AT government collects oil tax of 20 rub per liter on gasoline for 10 rubles. on high-speed diesel fuel (HSD), kerosene oil and light diesel fuel (LDO) in line with his commitment with IMF.
By deal government should gradually increase the tax on oil to 50 rupees. on oil products to collect 855 billion rupees during current fiscal year.
Finance minister also said government signed and sent a letter of IMF intention boardrequest for approval of in next credit tranche of $1.17 billion. Therefore, he added so that there are no questions of going back on commitments given by the IMF. He hoped that board will approve the tranche on August 29th.
Mifta claimed that he stood behind all decisions made acting government, saying that Prime Minister Shahbaz Sharif should also give credit for stress-bearing as a political leader and endorsing price to travel on foot.
He added that the governments coalition allies should also be congratulated for “burning your political capital” for for the sake of the country, hoping that the nation will understand the situation.
Finance minister faces obvious rebellion inside party while in the country just survived economic default after he started reversing ‘wrongpolicy of previous PTI government.
Read Fuel prices are likely drop on up up to 15 rubles per liter
“The country cannot achieve independence and true independence due to high rise trade deficit, finance minister argued in defense of his decision increase gasoline price.
On Monday, government increased rate of gasoline at 6.72 rupees, but this of high speed diesel fuel (HSD) and kerosene were reduced 51 paisa and 1.67 rupees per liter, respectively.
AT price of gasoline was raised to Rs 233.91 from Rs 227.19 per litre. The previous PTI regime canceled the oil levy and froze price of gasoline 150r per liter for four months, derail the IMF program and subject the country to default.
After initial hesitation, PML-N led coalition raises oil prices from May 15 as part of an IMF deal.
Mifta explained the formula for working out prices for petroleum products. He specified that the Oil and Gas Regulatory Authority (Ogra) took Platts average prices. “Then they are multiplied by the average exchange rate of previous day and then adds freight and premium paid by PSO (Pakistan State Oil) on top of those prices,” he said. added.
میاں صاحب نے اس فیصلے کی سخت مخالفت کی اور یہاں تک کہ دیا کہ میں مزید ایک پیسے کا بوجھ عوام پر نہیں ڈال سکتا اور اگر حکومت کی کوئی مجبوری ہے تو میں اس فیصلے میں شامل نہیں ہوں اور میٹنگ چھوڑ کر چلے گئے۔ https://t.co/McG019GW6Z
— Maryam Nawaz Sharif (@MaryamNSharif) August 15, 2022
“Besides, this also truth up’ previous two weeks cost taking into account the Rs paid by the PSO at the actual exchange rate, as opposed to the average used to estimate the previous two weeks cost”, minister indicated.
Miftah said the country paid a premium of $8.5 per barrel. on diesel fuel and $17.5 per barrel on petrol.
He claimed that government did not impose new taxes on oil products, and prices rose due to other factors.
“Increase or decrease in prices are in line with PSO procurement,” he said. added.
On inquiry about PML-N supremo and former “irritation” of Prime Minister Nawaz Sharif over in price hike, i.e. minister replied that the ex-premier was part of of meeting that discussed on petrol rate.
However, he added that it would not be “appropriate” for him to comment farther on in issue.
Miftah said the economic situation is improving in Pakistan and in the situation is better than before, adding that further positive effects will be seen as the rupee continues to appreciate and crude oil prices decline. down.
He added that the US dollar got under control and price was constantly declining against rupee for in past 15 days. “Strengthening the rupee should reflect strength of in economy and current account position, minister added.
Read more Government gasoline campaign move catches people off guard
Miftah noted that during first half of outflow this month of dollars from Pakistan was $3.4 billion. against an inflow of $4.2 billion, indicating an improvement in the situation.
He added what government tried to increase the flow on Account of exports and foreign remittances up to $65 billion with imports limited to $70 billion in this fiscal year.
“The country ordered current Account of nearly $17.5 billion in previous financial year on in back of Imports worth $80 billion,” he said.
Finance minister argued that the fight against inflation next on on the government’s agenda.
