Federal Minister for Finance, Miftah Ismail, said on Wednesday that 80 percent of the petrol and diesel is used by rich people, who can afford higher prices.
Speaking about the impact of the current hike in prices of petroleum products on a private TV channel, Miftah said that the subsidy on petroleum products is unjustified as it goes into the pocket of the elite class.
“Therefore, half of the subsidy provided by the previous government [on oil products] was withdrawn, and a “Sasta Petrol Sasta Diesel” scheme was launched instead to provide a cushion of Rs. 2,000 monthly to 14 million families,” he said.
Miftah noted that inflation was taking place all over the world.
“Imran Khan said that inflation is a global phenomenon and there is no doubt about that,” Miftah said.
He also accepted the 5.37 percent growth rate claimed by the Pakistan Tehreek-e-Insaf (PTI) government, saying that he does not want to go into the nitty-gritty of the formula.
Earlier, in an interview with CNN, Miftah said that sanctions on Moscow mean it will be “difficult for him” to imagine buying oil from it.
“The previous government wrote a letter to Russia — that letter was not responded to. Russia has also not offered us any oil, and it is now under sanctions. So it’s very difficult for me to imagine buying Russian oil,” he added.
