Federal Finance Minister, Miftah Ismail, on Monday, said that Economic Coordination Committee (ECC) has approved increasing the electricity prices by Rs. 7.91 per unit.
Replying to media queries, the Minister said that the government will gradually increase the prices of electricity. The matter will also be discussed in the cabinet meeting today.
Rejecting the ongoing discussion on Twitter against his company, the Minister said that there is no tax exemption for his company.
The Lays Company will get benefit as it wants to export its products. “My company uses the candy color but there is no reduction in the duty of candy color” he added.
Earlier, addressing a post-budget conference named “Pakistan’s Economy- Way Forward” organized by ICA Pakistan, Miftah said that Pakistan would have defaulted if the government did not abolish subsidies on petroleum products.
The government is still offering Rs. 53 per liter subsidy on high-speed diesel, Rs. 19 on petrol, Rs. 24 on kerosene, and Rs. 23 per liter on light diesel.
The International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products. Sri Lanka also gave subsidies to its public and it, eventually, defaulted. Today, Sri Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people, he said.
The Finance minister also said that the government will have to further increase the prices of petroleum products and a difficult situation could arise in mid-July.
He said that once the agreement with the IMF is reached and Chinese banks extend their loan facility to Pakistan, the market will regain confidence.
On the other hand, if we do not settle our matters with IMF, the World Bank will hold $9.5 billion and the ADB $8.8 billion in the financing, adding that Pakistan needs $42 billion in the next fiscal year and we have to pay $21 billion in debt.
He also said that government would also include 6 million people in the Benazir Income Support Program. The government has received 4 million texts in 10 days after announcing to give Rs. 2,000 for petrol subsidy.
He said that the government has announced incentives for agricultural development in the budget and would also announce the export policy in a few days.
