On Monday, Miftah Ismail, Finance Minister of Pakistan said that it is necessary to withdraw subsidies on petroleum products. He further added that if this does not happen, then Pakistan would default. The IMF does not seem to strike deal with Pakistan until the decision is made to increase petroleum prices again.
Speaking at a post-budget conference, the Finance Minister said, “The lawmakers are angry with me on the proposals to increase the price but I have no other option and if they do not take action then the country will default”.
He further added, “Pakistan’s economic situation has never been as bad in the past as it is facing now”. He also added that a span of two or three months is required for inflation control.
Miftah Ismail stated that the current government has encountered an Rs. 2,500 billion circular debt. On the other hand, NEPRA should give a subsidy that the government has allocated Rs 1,100 billion to the energy sector. He said that the government is faced with the toughest economic crisis currently.
“We are bringing shopkeepers into the tax net,” he stated and also highlighted that various people are not satisfied with the flour quality.
Finance Minister further added that the international market is currently faced with a price hike for oil. Furthermore, the production of electricity is also compromised due to rising coal prices.
Ismail further said that the gas circular debt has reached up to Rs. 1500 billion. He added that this has resulted in the deficit faced by the gas departments.
Finance Minister also said that currently, Prime Minister is unhappy due to the rising prices of petroleum products.
