Govt, JI to form panels on petroleum levy

LAHORE:

The government and Jamaat-e-Islami (JI) on Thursday agreed to hold technical-level talks on reducing the petroleum levy and fuel prices, with both sides to form teams of experts to examine the issue and work out a feasible mechanism for providing relief to consumers.

The decision was announced at a press conference in Lahore on Thursday following a meeting between the JI leadership and a government delegation at Mansoorah. Planning Minister Ahsan Iqbal, Prime Minister's Adviser on Political Affairs Rana Sanaullah and Punjab Minister Khawaja Salman Rafiq represented the government, while JI emir Hafiz Naeemur Rehman led the party delegation.

The government invited the JI to nominate experts to join the technical discussions, which are scheduled to begin on Monday. Ahsan said the two sides would examine the petroleum levy and other proposals and expressed hope that the technical teams would develop a workable solution within two weeks.

Sanaullah said the government was ready to consider feasible proposals put forward by the JI to reduce the burden on consumers. He said both sides wanted to provide relief to the public and that the discussions had been held in a positive atmosphere.

Rehman said the JI would continue its sit-ins against high petroleum prices while negotiations with the government proceeded simultaneously. He added that the party had already constituted its technical team and was ready to discuss the proposals with the government.

The JI team is led by Liaquat Baloch and includes Naveed Ali Baig, Ziauddin Ansari, Nasrullah Randhawa and Faisal Shah.

 

Govt seeks practical solution

Iqbal said the government delegation had visited Mansoorah on the instructions of Prime Minister Shehbaz Sharif and that the government itself wanted petroleum prices to be reduced and relief provided to the people.

He further stated that the government had proposed forming a committee to identify a practical mechanism for providing relief through the petroleum levy and invited the JI to nominate experts so both sides could jointly work out a viable solution. "The government will consider any feasible proposal," he added.

Iqbal stressed that the national interest was paramount and said the government did not want unrest in the country. He noted that Pakistan was also fighting terrorism and warned that hostile elements could exploit instability.

He said political and economic stability was essential for attracting investment and that unnecessary protests and disorder could discourage investors.

He added that Pakistan had been moving towards economic recovery after 2016 but the impact of the previous four years had not been fully overcome, leaving the country dependent on International Monetary Fund (IMF) programmes.

The planning minister further said abandoning the IMF programme also carried a cost, adding that Pakistan's consumption exceeded its income and forced it to seek assistance from the IMF and friendly countries.

Iqbal stressed the need to reduce imports and increase exports, saying political and economic stability would help boost exports.

Sanaullah said the government remained focused on reducing the burden on the public from inflation, the US-Iran war and rising oil prices.

He said the JI had presented proposals that could provide relief to consumers and noted that relief measures in the power sector had also been worked out following consultations with the party.

"The government is ready to do this," Sanaullah said, adding that officials from the Ministry of Finance, Petroleum Ministry and other relevant departments should sit with the JI team and examine the proposals.

He said the essence of democracy was dialogue despite political differences and that the technical committees would now continue the negotiations.

 

JI sets out demands

Rehman said Thursday marked the 19th day of the JI's protests, adding that sit-ins that initially began at three locations had now expanded to 15-20 locations, with participation increasing.

He stressed that the protests were not being held for political or personal interests but over issues affecting the public, particularly inflation. "This is our agenda. Along with the big issues, there are also the everyday issues, such as inflation. Every man, woman and child is suffering from it," he added.

According to Rehman, around Rs131 per litre of the current petrol price comprises various taxes, and the government could substantially reduce the burden on consumers by cutting them. He claimed that the JI's demand to bring petrol prices down to Rs225 per litre was justified.

The JI chief further said the petroleum levy had originally been introduced to improve refinery and storage capacity and reduce the country's import bill. He said more than Rs8 trillion had been collected through the levy since its introduction.

He also criticised the continued collection of the petroleum levy during wartime conditions.

Rehman raised concerns over capacity payments to independent power producers (IPPs), saying consumers were being charged even when electricity was not being generated. He also questioned payments linked to regasification plants when gas was not being received.

The JI has proposed reducing the petroleum levy and fuel prices, renegotiating more agreements with IPPs and making naan available to poorer people at Rs10.

Rehman also referred to the government's decision to reduce the price of diesel by Rs30 following discussions in Karachi, saying the JI would present its findings on petroleum pricing. He said the party wanted the government to resume negotiations with more IPPs, arguing that earlier efforts had helped reduce electricity prices.

Citing a government report, he said more than 40% of the population was living below the poverty line and stressed that providing relief to the public was therefore essential.

He maintained that the JI understood the country's economic, law and order and international situation but insisted that its demands were aimed at providing relief to the public rather than securing political or electoral gains.

The JI chief thanked citizens and traders for supporting the party's protests and strike, saying demonstrations and sit-ins were continuing in several cities. "In many cities, Alhamdulillah, there was a complete strike. I thank the Pakistani citizens and merchants for this," he concluded.