Govt trying hard to maintain petrol price: Miftah Ismail

KARACHI: Finance Minister Miftah Ismail on Thursday said former prime minister Imran Khan made promises to the International Monetary Fund (IMF) against the national interest and because of it, the petrol prices were increased.

"They told the IMF that they would not incur a loss (offer subsidies) on diesel — right now you are incurring a loss of Rs70 per litre," he said. "They had promised the IMF that they would not incur a loss and would instead impose a Rs30 levy and 17 per cent sales tax, which means that, according to the agreement made with the PTI, diesel should be Rs150 more expensive. What is Rs145 right now should be Rs295," Ismail said while addressing a press conference at the Muslim League House, to explain why people were paying too much money for petrol. Pakistan Muslim League-Nawaz Karachi leaders Nasiruddin Mehmood and Ali Akbar Gujjar accompanied him.

He said that the current government will try its best not to increase the petrol price. Slamming the Pakistan Tehreek-e-Insaf-led government’s economic policies, Ismail said the previous government had created problems for the country. "In the tenure of the PTI-led government, around six million people became jobless and 20 million people pushed below the poverty line,” he said. "No government had sold petrol at a loss in the country’s history, because the economy could not afford it,” the finance minister said. "If fuel prices are not hiked in May, the treasury will lose Rs102 billion."

Miftah said the monthly cost of running the civilian government, including the courts, education, and police system, is Rs45 billion. He also said the government could no longer borrow money from the State Bank of Pakistan because of new laws related to its autonomy. He, however, added they have no plan to curtail the powers of the SBP. He maintained that the housing schemes of the previous government will continue.

Ismail said that ever since PM Shehbaz had assumed office, the government was primarily focusing on reducing the prices of essential commodities. Sugar is being sold at the lowest rate since 2019. He maintained that the commodity is available at Rs70 per kilogram at the Utility Stores. The price of 20kg wheat bag has been slashed to Rs800 from Rs1,200. The price of ghee has been reduced by Rs200 per kg.

Khan will have to answer why Shahzad Akbar turned a blind eye to the sugar scam, he added. In addition to this, Miftah Ismail said that the government had improved the electricity situation in the country.

Ismail said the country’s survival is with China and therefore it is necessary to move the CPEC forward. “In the CPEC’s second phase, nine industrial zones will be set up in the country,” he said. “With US and European investment, we could not build a single plant but we worked with China on the projects worth billions of dollars.”

He also said the current government has successfully negotiated with Saudi Arabia and the United Arab Emirates to stabilise the economy. He said the Pakistan government has requested Saudi Arabia not to withdraw its deposits worth $3 billion in the State Bank of Pakistan until the end of this year, said Finance Minister Miftah Ismail. Last year, Saudi Arabia had deposited $3 billion in the SBP to help support Pakistan's foreign currency reserves.