ISLAMABAD: The prime minister on Thursday lambasted his predecessor, Imran Khan, for record-high prices for road fuels as he defended his beleaguered government in the face of severe public backlash following a third cut in fuel subsidies since May 26.
Developing nations are suffering the biggest hit from this year’s oil shock. Many, like Pakistan, are dependent on imported fuel and are being crushed by a combination of high international prices, weak currencies and competition from rich nations whose economies are rebounding from the coronavirus pandemic.
Khan was ousted in April after reducing fuel prices and then freezing them for four months, costing the government $600 million a month in subsidies, according to a Bloomberg estimate.
Today, after removing the subsidies, the prices of fuel at forecourts have hit record highs, as the cost of living crisis intensifies. The average pump price for petrol reached Rs233.89 a litre, surpassing the previous record of Rs209.86 set on June 2.
Seeking to deflect the blame on Pakistan Tehreek-i-Insaf (PTI) chief, Shehbaz Sharif said Pakistan Democratic Movement (PDM) government was “left with no choice” because of “those who struck the worst ever deal” with the International Monetary Fund (IMF).
I wonder whether those who struck the worst ever deal with IMF & took patently bad economic decisions have the conscience to face the truth. How can they pretend to be innocent when what the nation is going through is clearly their doing? Details soon https://t.co/6Cjeimgfd1
— Shehbaz Sharif (@CMShehbaz) June 16, 2022
“I wonder whether those who struck the worst ever deal with IMF [and] took patently bad economic decisions have the conscience to face the truth,” said Sharif in a series of early morning tweets.
“How can they pretend to be innocent when what the nation is going through is clearly their doing?”
The prime minister further expressed the resolve that Pakistan would soon get out of “economic difficulties”.
In the wake of rising petroleum product prices in the international market and exchange rate variation, maintaining the fuel prices at a subsidised rate is increasing the fiscal deficit and current account gap, the Ministry of Finance said in a statement.
In addition, subsidies are putting pressure on the foreign exchange reserves, it added.
The IMF wants the nation to take strict measures to control its fiscal deficit in the face of a balance of payment crisis.
— With Reuters
