Gov Plans to Limit Petrol consumption and Curb high Import Bill

The government of Pakistan has decided to maintain the prices of petrol products due to global trade wars and frequent price fluctuations. It has been decided by the government not to decrease prices, as they have no effect, and it does not benefit the consumer as it should. It is also rumored that the government of Pakistan wants to maintain petrol prices because it will support their cause of reducing electricity prices, and it will cross-fund it.

Additionally, the government of Pakistan has increased the levy on diesel and petrol prices from PKR 60 to PKR 70 to adjust the shortfall in FBR tax collection and to convince the IMF for a staff-level agreement, and Pakistan was successful in this regard as the IMF has officially announced the much-awaited staff-level agreement of their 1st review last month. Which is one of the reason government increased levy on petrol prices.

Another major reason the media have reported that the government of Pakistan is not willing to decrease the prices of petrol is because if the consumption increases, then Pakistan would again face a high import bill, which could be the cause of another current account deficit, and this time it will be damaging to Pakistan as no friendly country is willing to lend Pakistan unconditionally. Moreover, Pakistan has opted not to for high-interest rate loans, as they do not help Pakistan in the medium or long term. Moreover, the government of Pakistan is relying on itself, as remittances and sustainable import figures have given the government confidence for external financing of imports. Therefore, government has decided to maintain the current prices of petrol. 

The government of Pakistan plans to bring people into confidence regarding this approach, and they are sure that the public will support government reforms that are meant for Pakistan's long-term prosperity by maintaining current prices of petrol.