After fuel, PTI leaders fear avalanche of taxes

LAHORE:

The government’s decision to allow a massive increase in petroleum prices drew vehement criticism from the opposition – namely PTI and PML-Q – on Sunday, warning that the “bombshell” presaged another avalanche of taxes threatening to strike the nation soon.

PTI chairman and former premier Imran Khan berated the petrol price hike, saying that the “total mismanagement” of the economy by the “imported government” has “crushed the masses and salaried class”.

“Electricity and gas price hike and 35% unprecedented inflation expected with Rs200bn mini-budget,” he tweeted.

The people were caught off guard on Sunday morning after Finance Minister Ishaq Dar announced the hike in one go in a brief televised address just 10 minutes before the new prices went into effect at 11am.

While the government continues to try to convince that better days were ahead and skirts the responsibility by asserting that the previous government deserved the blame for the chaos, the opposition sounded alarms that prices were symptomatic of the moribund economy that has hurtled out of the ruling coalition’s hands.

The hike came as the rupee value plummeted this week and the country expects an International Monetary Fund (IMF) to visit in a few days to discuss the stalled 9th review of the funding programme.

‘Inflation gone out of control’

Slamming the dizzying increase in fuel costs, PML-Q leader Pervaiz Elahi quipped the nation had been greeted with the new prices upon the return of PML-N senior vice president Maryam Nawaz.

He alleged that the credit for the increase in the prices of petroleum products went to PML-N supremo Nawaz Sharif and his daughter Maryam. “Inflation has gone out of control, law and order situation has gone worse, crimes have become rampant and administrative governance is also nowhere to be seen.”

In a meeting with former federal interior minister Brigadier (Rtd) Ijaz Shah, Elahi painted a grim portrait of the state of affairs, saying the development projects that were creating employment opportunities were being nixed.

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“The government is pushing the country towards the brink of default. People have rejected those who have trapped the nation in the torment of inflation ... every day people are waking up to a new storm of price hikes under PDM’s rule,” he added.

‘Another hike to hit nation soon’

PTI’s Asad Umar said that the public was already fed up with inflation. “May Allah have mercy on these people and deliver them from this punishment,” he added.

Meanwhile, former finance minister Shaukat Tarin said there would be another hike in fuel prices when the IMF mission would visit Pakistan next week.

Speaking to a private news channel, the PTI leader highlighted that the devaluation of the rupee would affect the prices of all commodities.

“They haven’t even added any tax to the new price. But taxes will be added,” he said. “When the IMF [mission] comes, you will see the government will further increase prices.”

PTI leader Shireen Mazari lashed out at the government for hurling yet another bombshell at the masses.

“Petrol and diesel increased by Rs35, 35 per litre each. Yet another bombshell on the nation by the conspirators,” she tweeted. “No wonder petrol stations in Islamabad were all closed this morning except for PSO!”

‘Nation paying price for NRO-2’

PTI leader and former National Assembly deputy speaker Qasim Khan Suri assailed the ruling coalition while comparing the high prices with those during the PTI’s tenure.

“The nation is paying a hefty price for [National Reconciliation Ordinance] NRO2,” he tweeted, alleging that the government has been brought to power through a deal.

Yasmin Rashid, a senior PTI member, pointed out that the petrol prices were jacked up a day after Maryam Nawaz urged the nation to repose its trust in Ishaq Dar in the matters of handling the ailing economy.

“Today diesel and petrol have become expensive by Rs35 and it will affect everything,” she said and alleged that the government "is trying to take the revenge, actually meant for Imran Khan, from the people".

Finance Minister Ishaq Dar announced the increase in petrol and diesel prices by Rs35 per litre earlier on Sunday in a brief televised address to the nation and added that Kerosene oil and light diesel oil prices were jacked up by Rs18 per litre.

Moreover, as the government ended its control over the rupee-dollar exchange rate in order to revive the IMF loan programme, the Pakistani currency took a downward streak.

The country is seeking the revival of the stalled IMF programme of $6.5 billion to avert the looming high risk of default on international payments.

The SBP had said in its latest weekly update that the foreign exchange reserves had further depleted by $923 million – barely enough for two to three weeks’ import requirement.

Besides, Pakistan is scheduled to repay foreign debt worth $7 billion in the last five months (Feb-Jun) of the current fiscal year 2023. It will repay another $74 billion in the next three years – the fiscal year 2024 to the fiscal year 2026.

The revival of the IMF programme will help the government raise a new debt of around $3 to 4 billion over the next couple of months from multilateral and bilateral creditors, including the IMF, World Bank (WB), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and friendly countries like China, Saudi Arabia, United Arab Emirates and Qatar.