ISLAMABAD, March 9: “Yes, we have consulted the IMF on the relief package. They should not worry about this as we are not increasing the fiscal deficit because of this and we are not taking any loans. We have some capacity because our revenues have improved,” he said while addressing a press conference in Islamabad. PID/File
Finance Minister Shaukat Tarin on Wednesday said the International Monetary Fund “should not” worry about the prime minister’s relief package provided to the public on fuel and electricity prices, adding that the government was providing Rs104 billion worth of subsidy on petroleum prices.
“Yes, we have consulted the IMF on the relief package. They should not worry about this as we are not increasing the fiscal deficit because of this and we are not taking any loans. We have some capacity because our revenues have improved,” he said while addressing a press conference in Islamabad.
The finance minister added there were some revenues, which the government had “not captured” earlier like it had dividends of SOEs for the last 3-4 years that were not declared. Moreover, the government did not add it in the budget, he said, adding: “We have 1.2 trillion [of dividends] of oil companies and we still have Rs950 billion if we cut leakages. So, we were of the view to capture this and we will invest much of the amount on the circular debt.”
He added the government had decided to take some of the amounts from the PSDP and some of the amounts has been taken from Covid and Ehsaas fund. “So I think the IMF should not have any objections to this [fuel and electricity relief].”
Tarin shrugged off the IMF’s concern on the political stability, saying that the people would not be able to bear the burden if the global lender continues to impose more restrictions. He urged the IMF to ease restrictions and expressed hope for the next meeting. Elaborating on the government’s decision to provide such a relief, he said the government was providing Rs104 billion worth of subsidy to the public on oil prices and the Rs5 per unit relief on the electricity would be applicable to the people using 700 units of electricity.
“We are bringing the people out of this burden and people are not aware of this,” he said, adding that over the last three years, the global oil prices and inflation was affected by three things – including the Covid-19 pandemic, fuel supply distribution after easing of the pandemic, and the Russia-Ukraine conflict.
“We will give Rs136 billion worth of subsidy to the public on fuel for the next 4 months,” Tarin said.
The finance minister dispelled an impression that the government’s decision to provide such relief was a response to the growing opposition pressure. “Realistically we are trying to help the people and this package is not about political consideration,” he said, adding that the relief was for the urban lower middle class, middle class, and salaried class.
He “could not fathom” the media report about Pakistan seeking financial support of about $21 billion from China. During the visit to China, he said the premier had a meeting with big companies and met the Chinese leadership. Tarin said assistance was sought in populating industries made under the China-Pakistan Economic Corridor, boosting the agriculture sector, strengthening the IT sector, and calling for balanced trade with the neighbouring country. – TLTP
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