In the wake of an unprecedented economic crisis, coupled with the drastic aftermath of deadly floods in 2022, the Pakistan government has lifted the prices of petrol and diesel by Rs 35 per litre.
The move came days after the Pakistani rupee plummeted this week as the currency lost nearly 12 per cent of its value after the price caps were removed by the government.
Pakistan’s Finance Minister Ishaq Dar said the increase in the rates was carried out on the basis of recommendations by oil and gas authorities. This may have been implemented due to the higher cost of purchasing energy from the global market.
“This rise is being done immediately on the recommendation of the oil and gas regulatory authority who said there were reports of artificial shortages and hoarding of fuel in anticipation of price rises – hence this price rise is being done immediately to combat this,” news agency Reuters quoted Dar as saying.
Dar’s statement comes a couple of days after Dar had said that ‘Allah was responsible for Pakistan’s economy and prosperity’. “If Allah can create Pakistan, then he can also protect, develop, and make it prosper,” Dar said.
Cash-strapped Pakistan has pleaded for assistance from external financing. Pakistan’s local reports stated that the United States has agreed to support Pakistan during its unprecedented economic crisis and the aftermath of floods last year. On Thursday, a Washington-based global lender announced that a staff mission would deliberate on Pakistan’s bail-out programme.
Pakistan secured a USD 6 billion IMF bailout in 2019. It was topped up with another USD 1.1 billion in 2022 to help the country following the unprecedented floods. But the IMF suspended disbursements in November due to Pakistan’s failure to make more progress on fiscal consolidation amid political turmoil in the country.