Prime Minister Imran Khan has unveiled a huge relief package for the national amid global financial crisis post-Covid pandemic and a conflict between Ukraine and Russia.
An economist Abid Qaiyum Suleri, who is heading Sustainable Development Policy Institute (SDPI) and a member of PM Imran Khan’s Economic Advisory Council (EAC), shed light on the federal government’s strategy to cope with the inflation challenge despite global developments.
Abid Qaiyum Suleri detailed in a Twitter thread, saying, “The government of Pakistan has found a specific fiscal space of Rs250 billion, which is being channelised to provide relief in energy prices. Here is the breakdown.”
The economist said, “1.5 billion litres of high-speed diesel (HSD) and Petrol is being consumed per day. Rs10 per litre relief means Rs15 billion per month.”
He said that a decrease of Rs5 per unit in electricity prices was announced for slab 2-5 (all commercial) which is equivalent to a monthly impact worth Rs17.5 billion to the federal government. The total impact of the four-month subsidy on petrol, diesel and electricity will be Rs130 billion.
🧵The govt of #Pakistan has found a specific #fiscal space of 250 Bln, which is being channelised to provide relief in #energy prices. Here is the break down #PMIKaddressToNation
— Abid Qaiyum Suleri (@Abidsuleri) February 28, 2022
Suleri added that the cushion for petroleum, exchange rate and crude oil price movement is Rs93 billion and for electricity is Rs13 billion which will produce a financial impact of Rs237 billion in four months.
“Shaukat Tarin and [his] macro-economic advisory group team has been working on different options to provide relief to consumers. Hence today’s announcement is not a knee jerk reaction to any particular event.”
Yesterday, PM Imran Khan had announced to reduce petroleum products’ prices up to Rs10 per litre and a reduction of Rs5 per unit for electricity.
Yesterday, PM Imran Khan had announced to reduce petroleum products’ prices up to Rs10 per litre and a reduction of Rs5 per unit for electricity besides announcing tax exemptions for freelancers in the IT sector and subsidies for housing, agriculture and investments by overseas Pakistanis.