Islamabad: Pakistan Finance Minister Mittahi Ismail said on Wednesday International Monetary Fund ,International Monetary Fund) wants the subsidy given by the country to be withdrawn Imran Khan The government is looking to revive its Extended Fund Facility (EFF) by increasing fuel prices and electricity rates, local media reported.
Noting that the fund had set a series of pre-conditions related to fiscal adjustments close to Rs 1.3 trillion, the finance minister said the IMF wants fuel price hikes and taxes reinstated, a waiver scheme for industries shut down, reduced circular debt, hiked electricity rates and ensured fiscal savings to be completely reversed on February 28 relief package Expanded by the previous government, the Dawn newspaper reported.
However, Ismail said that the government has not yet made any commitments to the IMF, adding that the Prime Minister Shahbaz Sharif It is advised to put the minimum possible burden on the people.
Media outlets quoted him as saying, “We will not pass it as suggested, but something has to be done because the IMF program is inevitable.”
Notably, the previous government had a commitment to have a primary balance of PKR 25 billion which was now in deficit at PKR 1.3 trillion.
The minister stressed that more of the IMF’s focus is on eliminating fuel subsidies, which are creating a fiscal hole, while power tariffs may be delayed as it does not have a direct impact on the budget. He also hinted at abolishing tax waiver for industries initially.
Ismail said the break-even in petrol price requires a hike of PKR 21 per liter, followed by petroleum levy of PKR 30 per liter and 17 per cent GST which will take its price to PKR 234 per liter. “It’s not possible,” he said.
The finance minister accused Imran Khan of a completely “non-advisory and illogical” package that was not based on the finance ministry’s summary.
He said Khan had approved PKR 67 billion fuel subsidy for April, with no prior approval, while the PKR 96 billion subsidy was now projected for the next two months, as the liter subsidy on diesel increased to PKR 51.52 .
“Not only is the government paying these amounts from the budget every month, but the PKR 25-50 billion payable in taxes was not coming in. This, on an annual basis, translates into PKR 1.8 trillion – which comes from the country’s defense budget. is big.” Media outlets quoted him as saying.
“What have you done to this country to Khan sahib,” he said.
In particular, oil prices in Pakistan have become Hobson’s choice for the government as no budget can be made with subsidies of over PKR 150 billion on oil alone, however, oil prices are in line with international market rates. A strong public backlash against the increase would be invited. Government.
According to sources, the cap on oil prices by the Imran Khan government at the end of its term, a subsidy of 150 billion Pakistani rupees per month, has become a major concern for the current government, which sees it as a sabotage trap. Is. The Shahbaz Sharif-led administration reported The News International.
Noting that the fund had set a series of pre-conditions related to fiscal adjustments close to Rs 1.3 trillion, the finance minister said the IMF wants fuel price hikes and taxes reinstated, a waiver scheme for industries shut down, reduced circular debt, hiked electricity rates and ensured fiscal savings to be completely reversed on February 28 relief package Expanded by the previous government, the Dawn newspaper reported.
However, Ismail said that the government has not yet made any commitments to the IMF, adding that the Prime Minister Shahbaz Sharif It is advised to put the minimum possible burden on the people.
Media outlets quoted him as saying, “We will not pass it as suggested, but something has to be done because the IMF program is inevitable.”
Notably, the previous government had a commitment to have a primary balance of PKR 25 billion which was now in deficit at PKR 1.3 trillion.
The minister stressed that more of the IMF’s focus is on eliminating fuel subsidies, which are creating a fiscal hole, while power tariffs may be delayed as it does not have a direct impact on the budget. He also hinted at abolishing tax waiver for industries initially.
Ismail said the break-even in petrol price requires a hike of PKR 21 per liter, followed by petroleum levy of PKR 30 per liter and 17 per cent GST which will take its price to PKR 234 per liter. “It’s not possible,” he said.
The finance minister accused Imran Khan of a completely “non-advisory and illogical” package that was not based on the finance ministry’s summary.
He said Khan had approved PKR 67 billion fuel subsidy for April, with no prior approval, while the PKR 96 billion subsidy was now projected for the next two months, as the liter subsidy on diesel increased to PKR 51.52 .
“Not only is the government paying these amounts from the budget every month, but the PKR 25-50 billion payable in taxes was not coming in. This, on an annual basis, translates into PKR 1.8 trillion – which comes from the country’s defense budget. is big.” Media outlets quoted him as saying.
“What have you done to this country to Khan sahib,” he said.
In particular, oil prices in Pakistan have become Hobson’s choice for the government as no budget can be made with subsidies of over PKR 150 billion on oil alone, however, oil prices are in line with international market rates. A strong public backlash against the increase would be invited. Government.
According to sources, the cap on oil prices by the Imran Khan government at the end of its term, a subsidy of 150 billion Pakistani rupees per month, has become a major concern for the current government, which sees it as a sabotage trap. Is. The Shahbaz Sharif-led administration reported The News International.