Pakistan govt forces citizens to pay high fuel prices despite global decline

Islamabad: It seems that the Shehbaz Sharif-led government in Pakistan is in no hurry to give respite to the citizens from inflation as it has reportedly decided not to decrease the petrol and diesel prices to adjust the previous exchange losses as well as to raise taxation on the fuels. This comes after petrol and diesel prices recorded significant decline in global market, Geo News reported. [caption id=“attachment_12219242” align=“alignnone” width=“640”] Pakistani Prime Minister Shehbaz Sharif[/caption] Millions of people in Pakistan have had their purchasing power further eroded as a result of weekly inflation reaching past 40 per cent, with many finding it difficult to pay for even the most basic requirements. A significant decline has been recorded in fuel prices in the global market. Average fortnight prices of petrol and diesel would be taken for the next price revision today (Tuesday). The average price of diesel for the upcoming fortnightly review decreased by USD 7 per barrel, which translates to a reduction in domestic diesel prices of PKR 30 per litre in Pakistan, sources told The News International. On the other hand, the average price of petrol dropped to USD 90 per barrel for the next review of prices. It was USD 93 per barrel earlier.

As the Pakistani currency performed well against the US dollar in the last two weeks, it helped cut the import price of diesel and petrol, as the average exchange rate dropped by PKR 8 for the next review of prices, sources stated. However, they noted that there is no chance of any major reduction in the fuel prices for locals in Pakistan as the Shehbaz Sharif-led government was expected to adjust the exchange losses, which it did not pass on fully to the oil sector in the last many reviews. “It is likely that the government would pass on partially the adjustment because of getting space on the exchange rate side,” sources said. IMF bailout The Pakistani government, over the past few months, has fulfilled several demands of the International Monetary Fund (IMF) for the revival of stalled loan program. The State Bank of Pakistan’s Monetary Policy Committee is also set to meet on March 2 against its scheduled meeting on March 16 to review the demand of increasing interest rate, ARY News reported. As per the report in The News International, the fedral government, under the conditions put down by the IMF, may increase the petroleum levy on diesel to PKR 50 per litre as it has now got room to do it. This is currently PKR 40 per litre on diesel.

Pakistan, IMF deal ‘delayed’ According to sources, the staff-level agreement between the Pakistan government and the IMF is delayed and is likely to be finalised in March, ARY News reported. Despite Islamabad accepting majority of the IMF’s requirements, a staff-level agreement with Pakistan on the ninth review of a USD 6 billion loan facility that opens the door for the release of the much-expected USD 1.17 billion is facing a delay. The agreement is now likely to be signed in March, sources shared. (With inputs from agencies) Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.