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Miftah Ismail says the government is trying best save gasoline prices – Business

This was stated by the Minister of Finance Miftah Ismail. on Thursday what government would try it best maintain gasoline prices and assured that even if tariffs were raised, new tax or fee will apply.

Previous PTI government It was announced four-month freeze (until June 30) on petrol and electricity prices on February 28 with of a series of relief measures public.

PML-N LED coalition government heavily criticized Imran’s previous team. government for first failure to control fuel prices in country and later for “Disruption” of the program of the International Monetary Fund (IMF) due to fuel subsidies.

In recent meetings with in new finance ministerIMF tied continuation of credit program with appeal of fuel subsidies that Pakistan cannot afford. But Prime Minister Shahbaz Sharif is now twice rejected reports from the Oil and Gas Regulatory Authority (Ogra) on fuel price hikes — move which has been criticized by experts.

Ismail, in his press secretary today in Karachi said government I have never sold gasoline at a loss before. economy could not afford it, adding that if fuel prices were not raised in In May, the treasury will lose 102 billion rupees.

Ismail blamed the previous Imran Khan at the head government for implementing a policy that was contrary to what was agreed upon by them during the meetings with IMF in Washington.

government was currently accumulation of loss of 30 rub per liter on gasoline, he said, stating the previous government agreed not only avoid loss of 30 rubles per liter, but also levy a tax of Rs 30 and 17 percent sales tax.

price of petrol should 245 rubles per liter under the contract. former government did with IMF, he said. However, PML-N brought government was still selling gasoline at Rs. 145 a litre, and wanted to try it. best keep it price added.

“Difference in their (PTI governments) words and actions are worth 100 rupees,” he said. government lost 70 rubles per liter. on diesel, finance minister shared, claiming that the burden of these subsidies were placed on in public.

At his press conference today, Ismail said that if current oil prices remained for May – and claimed no decision it was customary to increase them – then government will lose 102 billion rupees.

“The whole month cost of civil government is 45 billion rupees, including the courts, the education system and the police. We accumulate losses of total 102 billion rupees on fuel equal to cost of works two and quarter government… It can’t be.”

Finance minister clarified that government had to borrow 102 billion rubles. market but liquidity has been tightened. government could no longer borrow money from the State Bank of Pakistan (SBP) because of new laws concerning his autonomy, he added.

“If I did, federal government you have to pay interest, but they will come back to the State Bank. When SBP lends to us, we print money which increases inflation.

However, when government borrowed money from private banks, several other factors came into play, including higher interest rate he said.

Interest rate was so high that market was shocked, he said, adding that when government borrowed from private banks, they didn’t have enough money left borrow private sector, which resulted in in reduced investment and industrialization.

In addition, banks lacked money left open personal account (letters of credit), leading according to him, to an increase in inflation. “When big companies do not have money and banks are delaying the opening of the LC, that is, a deficit of fuel because of which increases load shedding.”

power plants

Ismail claimed that 7500 megawatts power plants remained shut during the PTI government ownership because they had no fuel but 2000 MW power factories were closed because of flaw of maintenance.

PTI government thwarted meritocracy from the side first day, he said, claiming that since government borrowed so much money his ministry didn’t have enough money to pay the Energy Department purchase fuel for plants.

Accounts receivable from Pakistan State Oil (PSO) was over 500 billion rupees and it won’t be able to function if money was not provided, he said.

“AT [Imran] Khan sahba PSO time wrote to energy secretary that he cannot import oil for other companies because it has no potential. SNGPL (Sui Northern Gas Pipelines Limited), supplying gas in Punjab and KP, has faced Losses of 200 billion rupees in in last three years.

“We must make up for this loss, otherwise it also face supply problems. We also have to give PSO money. Imran Khan government It has left problems everywhere because of incompetence and corruption.

When the PML-N government’s term of office ended in 2018, the country has progressed and there was no circular debt in gas sector, Ismail said.

“There was no load shedding in Gaza Strip. Now load shedding in gas sector [is because of shortage of] 1500 billion rupees. Can Imran Khan give me this? money?

“We left [the circular debt at] 1062 billion rupees in 2018. Circular debt is now 2600 billion rupees. Will they (PTI) give me this? he asked, asking who would be held accountable.

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Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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