On Monday, Miftah Ismail, the Federal Finance Minister, said that the Economic Coordination Committee (ECC) has approved an increase in power tariffs of Rs. 7.91 per unit.
In response to media inquiries, the Minister stated that the government will progressively raise electricity costs. The topic will also be considered at today’s cabinet meeting.
The Minister, in response to the ongoing Twitter debate about his company, stated that his company is not exempt from paying taxes.
Because the Lays Company wants to export its products, it will benefit. “My company employs candy color, yet the duty on candy color has not been reduced,” he noted.
Miftah had previously stated during a post-budget seminar held by ICA Pakistan titled “Pakistan’s Economy- Way Forward” that Pakistan would have defaulted if the government did not repeal petroleum product subsidies.
The government continues to subsidize high-speed diesel at Rs.53 per liter, petrol at Rs.19, kerosene at Rs.24, and light diesel at Rs.23 per liter.
The International Monetary Fund (IMF) has pushed for the elimination of petroleum product subsidies. Sri Lanka granted its citizens subsidies as well, and it eventually defaulted. Sri Lanka is currently acquiring expensive oil and does not have the cash to purchase medicines for its people, according to him.
According to the Finance Minister, the government will have to raise the price of petroleum goods even further, and a serious situation could occur in mid-July.
He believes the market will restore confidence after an agreement with the IMF is reached and Chinese banks give loan facilities to Pakistan.
On the other side, if we do not resolve our issues with the IMF, the World Bank will hold $9.5 billion in financing and the Asian Development Bank $8.8 billion, with Pakistan needing $42 billion in the next fiscal year and owing $21 billion in debt.
He also stated that the government would expand the Benazir Income Support Program to accommodate 6 million individuals. After introducing a Rs.2,000 petrol subsidy, the administration received 4 million messages in only ten days.
He said that the government had announced agricultural development incentives in the budget and that the export policy would be announced in a few days.