Petrol and Diesel Prices /Price Hikes /Fiscal Deficit

 

   Pakistan / 17% hike in Petrol & Diesel prices / Bitter pill to control fiscal deficit 

 The new government in Pakistan handling the economy is possibly the biggest challenge and to prevent the country from spiralling into a deeper economic crisis, the shamba Sharif led government is taking some tough remedial measures reducing fuel subsidies, stopping all of them for the second time in a week. Now fuel subsidies have been slashed across the country the prices of petroleum products shot up after the Shabbat Sharif led government reduced fuel subsidies to petrol and diesel prices have been hiked by 17 per cent. The cost of all petroleum products an hour by 30 Pakistani rupees petrol will now be sold at more than 209 Pakistani rupees while diesel will cost 204 Pakistani rupees just last week. The country had raised prices by around 20 per cent. A subsidy of around nine Pakistani rupees per litre remains before a hike in fuel prices kicked in at midnight. Residents rushed to petrol stations across the cities of Lahore and Karachi. Angry residents complained of getting crushed under the inflation pressure since petrol prices are raised without any hike in their income foreign meanwhile the finance minister Mifta Ismail justified the move by calling it an attempt to control the fiscal deficit and secure an international monetary fund bailout for Pakistan and the IMF concluded negotiations. Last week the resumption of the bailout program and lifting of fuel subsidies has been the biggest issue between Pakistan and the IMF. The IMF demanded the government withdraw subsidies which are costing the cash-strapped country billions per month keeping petroleum products subsidized is costing Pakistan around 120 billion in domestic currency. Every month as the new rates petrol petroleum products subsidy would be reduced to about 25 billion Pakistani rupees per month and according to these reports, the IMF and Islamabad had reached a deal to release more than 900 million dollars in funds once Pakistan removed these subsidies meanwhile china has agreed to refinance Pakistan with funds more than 2.3 billion dollars. The rollover will be at a cheaper interest rate. The refinancing is expected to shore up Pakistan's foreign exchange reserves which are currently under severe strain following falling below 10 billion dollars and for more insights on the ongoing economic crisis in Pakistan. Our bureau chief Anas Malik sends us this report from Islamabad take a look. The Pakistani government has announced another increase in petroleum product surprises that is applicable from today. It was announced on a three-hour notice and with that increase, the petroleum prices have now risen by about 60 rupees Pakistani rupees in just eight days. This is the maximum hike that the petrol that petrol has ever seen and with the hike with the increase the petroleum prices have now crossed double figures or double have now crossed its double century. It's now being sold at Pakistani rupees 209.8 per litre now that increase has been received with a lot of critique by people within the government. The allies of the incumbent government by the opposition that is Imran Khan-led Pakistan and other people from various societies and sectors as well as the government. On the other hand, maintains that this has been done in line with its obligations to the IMF to reduce the fuel subsidies. It has also hinted that there can be more increase given that the government is still bearing about 24 rupees on our subsidy on diesel prices and whereas another eight to nine rupees on petroleum prices so that had more increase has been hinted upon now not just petroleum prices but yesterday there have been deliberations to increase the prices of electricity per unit. Reports say that from the first of July the applicable you know the price per unit of electricity would be 24 rupees that's a 47 per cent increase compared to what it was in the previous government. The government again said it emphasizes that it is being done in line with the IMF requirements the brunt of which is being born by the common people. The government goes on to say that in the upcoming budget there will be considerable relief will be provided in the upcoming budget that is to be presented before the parliament on the 10th of June. Hopefully, there will be a relief package for the people of Pakistan and they can live in peace. Anyway, Pakistani people feel that the IK government were doing better for the future of Pakistan. They do not want to see Shehbaz Shareef's family in Pakistan because after all they are beggars and thieves .They destroyed the Pakistani economy deeply.