Shahid Khaqan Abbasi calls fuel pricing policy ‘completely wrong’

Former prime minister rejects notion that federal government does not provide adequate financial resources to Karachi

KARACHI:

Awam Pakistan Party central convener Shahid Khaqan Abbasi on Wednesday criticised the government’s petroleum pricing policy, calling it “completely wrong”, while highlighting Karachi’s infrastructure challenges and governance issues in Sindh.

Addressing a press conference in Karachi alongside former finance minister Miftah Ismail and other party leaders, he said, “The government’s policy on petroleum product prices is completely wrong,” adding that current policies were directly affecting the public.

On April 24, the government jacked up prices of both high-speed diesel (HSD) and petrol by Rs26.77 per litre despite no increase being required in the rates of petrol. The government imposed a nearly Rs27 per litre additional tax on the fuel to push its price higher.

Petroleum Minister Ali Pervaiz Malik said in a statement that oil prices were increasing once again in the global market due to regional tensions.

"Due to the pressure of rising oil prices and agreements with global partners, the government is having to take steps to transfer the burden of increasing oil prices.

The new petroleum levy rate on petrol has been fixed at Rs107.4 per litre, as PM Shehbaz again chose to recover the tax meant to be recovered from diesel consumers from petrol consumers, a policy that he had earlier implemented and then reversed after public backlash.

Abbasi stated that the government appeared “powerless” and urged it to revise its policies to address public concerns. “Why is the government not focusing on resolving people’s problems?” he asked. He said, “It is important to discuss Karachi’s issues because if Karachi develops, Pakistan will develop,” he said.

He added that during his tenure, Ismail had approved funding for projects such as the Green Line and K-IV water scheme for Sindh. He said that under the National Finance Commission (NFC) award, provinces receive substantial funds, rejecting the notion that the federal government does not provide adequate financial resources.

Also Read: Govt hikes petrol, high-speed diesel prices by Rs26.77 per litre 

The former prime minister further noted that Sindh had been governed by a single political party for the past 17 years and continued to receive resources in proportion to its population, but despite this, the problems remain the same.

He referred to delayed infrastructure projects, recalling that an elevated train project was proposed in Gulshan-e-Iqbal around two decades ago, but no progress has been made on it to date. He also questioned the delay in constructing a Bus Rapid Transit (BRT) corridor in the area.

“The fact that the BRT road has still not been built remains a mystery,” he said, adding that even the contractor for the University Road development project had been changed. “If the government cannot build even a single road, what will it do?” he added.

Highlighting civic issues, Abbasi said many residents in Karachi rely on water tankers. He added that conditions in rural Sindh were also deteriorating and described the province’s infrastructure as being in a “ruined state”.

Read More: Part of BRT Red Line project given to FWO

“The government must answer when every citizen will receive water at home,” he said, also pointing to the presence of the hydrant and tanker mafias in the city. He further noted that public schools in Sindh were in poor condition.

Abbasi said industrial areas were facing significant challenges and warned that Karachi’s problems had implications for the entire country.

He questioned the utilisation of provincial resources, asking where the funds allocated to Sindh were being spent. “How will a province develop when those in power have properties in London and Dubai?” he said, adding that corruption in the country had reached high levels.

Referring to broader national issues, Abbasi claimed that around 1.5 million citizens had left the country. He also mentioned the recent closure of Islamabad for nearly 12 days, which disrupted schools, hotels, and businesses.