Tough decisions taken to avoid bankruptcy, says petroleum minister

Musadik Malik says PTI pushed the country towards default and bankruptcy for political gains

ISLAMABAD:

Minister of State for Petroleum Dr Musadik Malik on Friday said the incumbent government had taken tough decisions regarding subsidies on petrol and diesel, in compulsion, giving a special focus on reviving the national economy and steering the country out of the financial crunch.

Addressing a news conference along with the senior leader of Pakistan Muslim League-Nawaz (PML-N) and former prime minister Shahid Khaqan Abbasi, Musadik said that the previous government of PTI gave unjustified subsidies on petroleum products without any budgetary allocations and approval from the quarters concerned like the Economic Coordination Committee (ECC) and the federal cabinet.

Terming the subsidies "landmines" installed by the PTI government before facing the no-confidence motion against Imran Khan, he said they had put around Rs700 to Rs800 billion extra burden on the national exchequer in three months, if taxes were included.

Read more: Sindh, K-P govts slash fuel spending after spike in POL prices

Drawing a comparison, the state minister said around Rs528 billion in expenses were incurred annually to run the affairs of the whole federal government.

Besides, Dr Musadik said the previous government also violated the commitments made with the International Monetary Fund (IMF) about the subsidies for getting financial assistance.

“The PTI government, as a pre-condition, had signed a contract with the IMF that they will increase the prices and impose petroleum levy and sales tax. But, it violated sovereign commitment with the international financial institutions,” he said.

The minister said that the PTI did all this to push the country towards default and bankruptcy for political gains, and recalled Imran Khan’s recent statements about the country’s strategic assets and disintegration.

Dr Musadik said that the coalition government, under the dynamic leadership of Shehbaz Sharif, is committed to take due care of poor segments of the society by extending financial assistance to them.

After thorough deliberations, he said that the government would give a monthly stipend of Rs2,000 to the persons having Rs35,000 to Rs40,000 or less monthly income. As per the calculation, he said, almost four families out of six, have Rs37,000 per month income.

Read Time to depoliticise fuel prices

With the corrective measures taken by the government, the minister expressed confidence that in the upcoming few months, there would be financial stability and the country would be on a consistent path of progress and development.

Now, he said the stock markets had started performing well and the rupee was gaining stability against the dollar.

He said the required measures had been taken to advance negotiations with international financial institutions including the IMF.

He said that the government believed in increasing the productivity of industrial units so that more jobs could be created besides moving the economic wheel at a steady pace.

On the occasion, Shahid Khaqan Abbasi said that there was no country in the world that provided fuel to consumers below the purchase price, but in Pakistan, it was happening as even the current government did not impose any levy and sales tax.

He said that the reasons behind the increase in fuel prices were the global inflation and the devaluation of the rupee against the dollar.

“It [increase in fuel prices] was an extremely difficult decision taken after thorough review. If this step was not taken, the national economy would have collapsed,” he added.

Abbasi said that the subsidies could not be continued by getting additional loans from international institutions as it could cause an extremely negative impact on the economy and unprecedented inflation.

https://www.facebook.com/pml.n.official/videos/1017539725571700