Subsidy payment on edibles ‘hobbled by loan payoffs’

Fawad says govt in no position to provide relief to consumers

ISLAMABAD:

Federal Information Minister Fawad Chaudhry on Thursday said the government was unable to give subsidies on daily use items, especially edibles and petroleum products, “due to repayment” of the foreign loans taken by the previous governments.

“From 1947-2008, Pakistan took loans amounting to Rs6,000 billion to execute mega projects and build institutions, while worth Rs23,000 billion was borrowed during the past two tenures of Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) [from 2008-18],” he said while addressing the oath-taking ceremony of Pakistan Television Employees Union.

Last year, he said the country had to return worth $10 billion loans, whereas this year, the amount stood at $12 billion. In such a situation, it was not possible for the government to pass on maximum relief to the consumers, he added.

He said prices of commodities were increased globally after the outbreak of coronavirus, adding that “Pakistan is no exception”.

Read Fawad links PML-N’s defeat to ‘anti-Pakistan’ rhetoric

Fawad added that prices of petroleum products in the international market had witnessed a sharp rise and Pakistan had to import oil products.

He said, in the past, Pakistan was self-sufficient in natural gas but now its reserves are “depleting by 9 per cent every year,” so it was also being imported.