ISLAMABAD: Federal Minister for Petroleum Ali Pervez Malik Saturday said the government increased the fuel prices in line with commitments made to the International Monetary Fund (IMF), while assuring the public that rates would be reduced once international oil prices decline.
Speaking alongside Finance Minister Muhammad Aurangzeb in a televised address, Malik said the decision was taken to maintain the petroleum development levy (PDL) at levels agreed with the IMF before Pakistan’s case goes before the IMF Executive Board for tranche approval. “We did not take this decision happily, but it was a commitment with the IMF to raise the levy, so it was done last night,” he said.
The minister noted that despite no major fluctuations in global oil markets, petrol and diesel prices had to be raised by *nearly Rs15 per litre* due to the IMF agreement. He added that the government ensured uninterrupted availability of petroleum products across the country.
Following the increase, petrol prices rose from Rs399.86 to Rs414.78 per litre, while high-speed diesel (HSD) prices climbed from Rs399.58 to Rs414.58 per litre. Malik, however, assured consumers that the government would reduce fuel prices at a much faster pace once global oil prices ease.
Finance Minister Muhammad Aurangzeb said Pakistan was on course to achieve 4 per cent GDP growth, citing impressive growth in the large-scale manufacturing (LSM) sector during the first nine months of the fiscal year.
He said exports were also registering double-digit growth, but the country’s petroleum import bill had increased by $1 billion during March and April, compelling the government to pass on higher costs to consumers.
Aurangzeb said the government had nevertheless provided targeted subsidies for two-wheelers, public transport and small farmers to cushion the impact of rising fuel prices.
The finance minister said Pakistan is expected to access Chinese capital markets for the first time through a yuan-denominated bond next week.
“God willing, next week you will hear good news that for the first time, we will be accessing Chinese capital markets through Panda bond,” he said at a press conference. The $250 million issue, the first of a planned $1 billion programme, will be backed by the Asian Development Bank and the Asian Infrastructure Investment Bank.
