PM promises to release details of PTI-IMF deal

Minister lashes out at Imran for giving fuel subsidy equivalent to defence budget

ISLAMABAD:

After getting a backlash over the government’s late night announcement jacking up the petroleum products prices, Prime Minister Shehbaz Sharif on Thursday promised that he would take the nation into confidence on the specifics of the PTI-IMF deal soon

On Wednesday, Finance Minister Miftah Ismail announced a massive increase in the prices of petroleum products, effectively ending the subsidy that the PTI government put in place in February.

Acutely aware of the impact that a fuel price hike causes. Govt is left with no choice but to raise the prices due to IMF deal that PTI govt signed. Will take the nation into confidence on the specifics of the IMF-PTI deal soon. We will get out of these economic difficulties, IA.

— Shehbaz Sharif (@CMShehbaz) June 16, 2022

In a tweet Thursday morning, the premier admitted that he was aware of the impact that a fuel price hike caused. "Govt is left with no choice but to raise the prices due to IMF deal that PTI govt signed," he said, promising that he would take nation into confidence on the specifics of PTI-IMF deal soon.

"I wonder whether those who struck the worst ever deal with IMF & took patently bad economic decisions have the conscience to face the truth," PM Shehbaz continued. "How can they pretend to be innocent when what the nation is going through is clearly their doing? Details soon."

He further expressed the resolve that Pakistan would get out of these economic difficulties soon.

I wonder whether those who struck the worst ever deal with IMF & took patently bad economic decisions have the conscience to face the truth. How can they pretend to be innocent when what the nation is going through is clearly their doing? Details soon https://t.co/6Cjeimgfd1

— Shehbaz Sharif (@CMShehbaz) June 16, 2022

Amid backlash over subsequent hikes in petroleum prices, the federal government on Thursday defended its decision by pointing out that the annual cost of just one “political decision” of former prime minister Imran Khan, which was not ratified by his cabinet or the Economic Coordination Committee (ECC), was roughly Rs1,500 billion, which is equivalent to the annual defence budget.

Minister of State for Petroleum Division Senator Musadik Masood Malik said that the former premier had announced curtailing an increase in petroleum prices for a year and for this he decided to take out Rs1,500 billion to be divided equally between the rich and the poor through subsidy on fuel.

He compared the subsidy with the annual Public Sector Development Programme (PSDP) budget of Rs727 billion, the annual cost of Rs550 billion for running the federal government, and subsidy of Rs360 billion allocated for the poor.

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“This should help you understand that this was not a decision but a landmine that was laid down to push Pakistan towards economic destruction,” he added.

Emphasising that the coalition government was not power-hungry but wanted to address core issues, Malik explained if the prices of petroleum products were not increased for just one month then the cost incurred would have amounted to Rs100 billion to Rs120 billion.

He added that this roughly translates into Rs1,200 to Rs1,500 billion per year, which is almost equal to the annual defence budget.

He further said that the Pakistan Tehreek-e-Insaf (PTI) government gave Rs1,100 billion in subsidy to the electricity sector during the past year.

While justifying the latest hike in petroleum prices, Malik along with Defence Minister Khawaja Asif, Minister for Communication Asad Mehmood and PM’s Adviser on Kashmir Affairs and Gilgit-Baltistan Qamar Zaman Kaira urged the masses to adopt austerity measures, requested traders to close markets after sunset and sought nation’s help to overcome the soaring economic challenges.

“We have to change our way of life,” they emphasised.

While taking responsibility for providing relief to the masses within a few months, the ministers admitted that they were losing political capital by making unpopular decisions.

However, in the same breath, he said that there was no other way around to fix things except to change national habits and adopt a new culture of reducing wastage of water, electricity, gas and other resources.
At one point, the defence minister revealed that the fuel prices were currently equal in the United Arab Emirates and Pakistan.

Lambasting Imran for embroiling every person and institution in controversy and while listing different reasons behind the price hike, Asif said that the Russia-Ukraine war has caused further inflation as European countries were buying everything at exuberant rates just to corner Russia.

Urging rationalisation of market timings and regretting that the traders were not yet ready to do so, Asif said that 3,500 megawatts of electricity could be saved through early closure of markets, and it could go over 4,000MW if Karachi also follows this.

Nowhere in the world markets are kept open till midnight, he said, emphasising that 365 days of daylight should be used more than using the electricity being produced by oil.

Similar to Planning Minister Ahsan Iqbal, who recently advised reducing the consumption of tea, Asif said that people should go for one dish at their homes when things are not working out right, adding that one cannot even imagine what kind of difficulties were being faced by someone who is earning only Rs25,000.
“He might already have reduced the number of daily meals,” he added.

Asif, while criticising the former premier, said that Imran made his choices clear; give him premiership or else the country would break into pieces.

Currently, he said, Pakistan along with several other countries was at the crossfire because of the Russia-Ukraine war. He also favoured privatisation or closing down of loss-making government entities, saying that the economic bleeding needed to be stopped.

Kaira left nothing to the imagination when he said that subsidy could not be continued and if it is continued, it would lead to default, which in itself is a dreadful situation.

He, however, admitted two things: “mere talks cannot fill bellies” and “government cannot fight alone and needed public support”. Referring to the Covid-19 pandemic, he said that traders did not lose anything when restrictions were imposed, saying that it was time to go for similar actions once again.

Mahmood regretted that the government was “being punished for the sins that it did not commit”. He further regretted that the previous government pushed the country to the extent that no one was ready to trust Pakistan. He also asked Imran why he violated the International Monetary Fund (IMF) agreement after signing the deal.

All of them emphasised that the government had an easy choice to go for elections soon after coming to power but it chose to address issues and save the country from default.

They were also united in saying that they take the responsibility of taking the country out of crisis, saying that the results would be evident in the coming weeks or months.

They regretted that the destruction caused by the previous government would have long-lasting effects on the country.

Vowing that the country would not be allowed to become Sri Lanka, they said that Pakistan’s condition was not deteriorating in isolation as the effects of the Russia-Ukraine war were global.

Separately, on Thursday, Iqbal said that the government was compelled to increase the fuel prices with a heavy heart. He also slammed Imran for paving the way for the move.

Like the aforementioned ministers, he said that coalition parties could have saved their politics but they decided to save the country instead. He also lashed out at Imran for attacking the foundations of institutions.