Default inevitable if petrol prices capped: Miftah

ISLAMABAD – Federal Minister for Finance and Revenue Miftah Ismail on Monday warned that the country would default if the subsidy on petrol and diesel is not withdrawn till July.

Addressing a post-budget seminar here, the minister said that the agreement with the International Monetary Fund (IMF) couldn’t be possible without withdrawing the subsidy on petrol and diesel.

He further said that the electricity bills for the month of September will come with new rates. There were economic problems when they formed the government, he said adding that Rs 1100 billion subsidy was given to power sector due to which the government suffered a loss of Rs 1600 billion. “We are facing circular debt of Rs 2,500 billion and NEPRA is taking five months old price.

The Finance Minister warned that at present the imported coal has become 400 times more expensive, adding that if fuel adjustment charges are levied in June, then the electricity bill will be beyond expectations as the oil and coal are becoming more expensive all over the world.

He said that the gas departments have been facing deficit as the circular debt of the gas has reached Rs 1,500 billion.

 

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