Islamabad : The situation of Pakistan on the economic front is already bad. After the departure of Imran Khan, all eyes are now on the new PM Shahbaz Sharif, but to win the hearts of the people, Sharif has also started giving an economic turn to the country. Actually, a proposal to increase the price of fuel was sent by the Oil and Gas Regulatory Authority. The new proposal called for a 35 per cent hike in diesel prices but Sharif refused. In such a situation, there will be an additional burden of Rs 6,000 crore on Pakistan. Let us tell you, Pakistan is already immersed in huge debt.
Fuel prices have not increased since April 1, as oil companies already owe Rs 3,000 crore to the Pakistani government. The government will pay Rs 6,000 crore to oil companies to maintain the current fuel prices for the month of April. The Oil and Gas Regulatory Authority (OGRA) has set a target of Rs. 51.32 per liter (35.7%), Rs. 21.30 per liter (14.2%), kerosene costing Rs. 36.03 per liter (28.7%) but Sharif rejected it. The government is already burdened with fuel subsidy.
– electricity will be expensive
On the other hand, electricity will now become more expensive in Pakistan. The National Electric Power Regulatory Authority (NEPRA) has hiked electricity rates by Rs 4.8 per unit for the month of February due to rising fuel prices. PML-N leader Shahid Khaqan Abbai said that PM Shahbaz has decided not to make any change in petroleum prices. He said that the previous PTI-led government had taken the wrong decision of subsidizing petroleum products and it would hurt the country’s economy.
The World Bank has slashed Pakistan’s economic growth forecast for the current fiscal to 4.3 per cent, about one per cent lower than the previous year. He said the last-minute decision by the current government to provide energy subsidies put additional burden on the budget and put the International Monetary Fund (IMF) program at risk.