Ifs and buts: Fin min fixes Pakistan petrol price puzzle

Minister says Pakistan cannot afford Rs1,300 billion tax exemption

By: Samaa Web Desk

September 28, 2023September 28, 2023

Shamshad Akhtar leads delegation to IMF meeting

Caretaker Finance Minister Dr Shamshad Akhtar finally revealed how and when the petrol price in Pakistan will be reduced.

She was giving a briefing on the overall economic situation of the country to the Senate Standing Committee on Finance on Thursday.

Caretaker Finance Minister Dr Shamshad Akhtar said that expenditure in excess of income is the real cause of Pakistan's economic problems, and that the country cannot afford Rs 1,300 billion in tax exemptions.

She also said that there is a need to impose capital gains tax on immovable assets.

The minister said that the exchange rate has stabilized, the dollar has come down to Rs 288, remittances have increased, and the ban on imports has been lifted.

She also claimed that inflation is decreasing, having fallen from 38% to 25%. However, she said that the government is aiming to reduce inflation to 22%.

Dr Shamshad Akhtar also said that Pakistan is giving Rs1,300 billion in tax exemptions to classes that should be taxed on wealth, and Rs 1,000 billion in subsidies on electricity and gas.

She said that only countries with foreign exchange reserves of more than $400 billion can afford to give subsidies.

The caretaker finance minister announced the closure of all unlicensed money exchange companies and said that five banks have been given digital banking authority in September.

She said that the government is not interfering in the currency market, and that action is being taken against smugglers and hoarders.

She termed the situation of the country's debts as very dangerous and said that if the IMF program is not implemented, external resources will not come. The finance minister said that the petrol price in Pakistan will only come down if the international oil price falls.