The federal government has decided to increase the price of petrol by an additional 30 rupees, bringing it to an all-time high of 209 rupees per litre, to meet the requirements of the International Monetary Fund (IMF).
Federal Finance Minister Miftah Ismail announced on Thursday evening that the federal government has decided to raise oil prices in addition to ending the tax amnesty for the construction sector announced by the last PTI government.
The new price of petrol, after the latest increase, will be at Rs209.86, diesel at Rs204.15, kerosene at Rs181.94 and light diesel at Rs178.31, he announced and the new Prices will go into effect from midnight tonight.
The finance minister said the government is still facing a loss of around Rs9 in petrol despite rising to Rs30 as we do not collect any fuel tax.
He said that the government will reach an agreement with the IMF in June and that we are negotiating daily with the lender.
The IMF has called for the withdrawal of gasoline and electricity subsidies, he added.
Miftah also said that the government will have to end the subsidies announced by the last government, but he asserted that the government will not impose any new taxes in next year’s budget.
Miftah also said that the PTI government has taken out a huge loan over the past four years, comparable to the loan taken out by successive governments over the past 71 years.
He also said that the government will not raise tax on the working class in the next budget.
The finance minister said that Pakistan has also asked the IMF for an extension of the program and the lender agrees because Pakistan will start repaying the IMF loan from next year, so it is important for us to be in the program.
In a question, he said that monthly government expenditure is Rs 40 billion and if we minimize the expenditure, we could only reduce Rs 4 billion.
He again reiterated that the government will not impose any new tax in June and that the Pakistani government cannot sell gasoline at a loss.
Finance Minister said Hammad Azhar wrote a letter to Russia and when Imran Khan returned to Pakistan they wrote a letter asking for petrol as well as reduced price wheat but Russia did not never answered until now.
Pakistan would be ready to buy Russian oil at cheaper rates if the opportunity arose, provided no sanctions were imposed as a result of the deal, he claimed.