Pakistanis are likely to face a new wave of inflation as the National Security Committee (NSC) greenlighted tough economic decisions which would end subsidies to the masses.
It was learnt that cheap flour, ghee and sugar will not be available to the masses and the low-cost essential commodities will only be offered to beneficiaries of the Benazir Income Support Programme (BISP).
The federal government will make more tough economic decisions and prepare to further jack up the prices of electricity, gas and petrol.
Despite Finance Minister Ishaq Dar’s relief and commitment to make things cheaper, the nationals will be faced with more difficult economic decisions in the next six months.
In the National Security Committee (NSC) meeting, it has been decided to take important economic decisions for national sovereignty. Levy on petrol and gas will be increased from Rs70 to 100 and non-tax revenue of Rs855 billion will be obtained from petroleum levy.
Electricity and gas rates will be increased in a phased manner till June 2023 to reduce circular debt.
An economic roadmap for the next 10 years will be prepared and the governments established in the next 10 years will not politicise the economy.
The economy will be kept separate from politics for the next 10 years, the purpose of this decision is to maintain the continuity of economic decisions.
More steps will be taken to increase tax revenue and improve tax collections from traders across the country. Federation and provinces will cooperate with each other to increase tax revenue.
NSC declaration
National Security Committee has reiterated its resolve to have zero tolerance for terrorism in Pakistan and reaffirmed its determination to take on any and all entities that resort to violence.
The 40th NSC meeting was held in Islamabad under the chairmanship of PM Shehbaz Sharif.
The committee expressed that Pakistan’s security is uncompromisable and the full writ of the state will be maintained on every inch of Pakistan’s territory.
The committee was apprised of the security situation of the country with a particular focus on recent terrorist incidents in Khyber Pakhtunkhwa and Balochistan.
The Prime Minister emphasized that the war against terrorism will be led by federal and provincial governments as per National Action Plan in accordance with National Internal Security Policy with people-centric socio-economic development as a priority while Armed Forces will provide resolute deterrence and secure conducive and enabling environment.
Provincial Apex Committees are being revived in full earnest and LEAs especially CTDs will be brought up to the required fighting standards with requisite capabilities.
The forum concluded that no country will be allowed to provide sanctuaries and facilitation to terrorists and Pakistan reserves all rights in that respect to safeguarding its people.
The forum undertook a comprehensive view of the ongoing economic situation vis-à-vis challenges being faced by the common people of Pakistan, particularly the lower and middle-income classes.
The finance minister briefed the forum about the economic stability roadmap of the government including the status of discussions with international financial institutions, exploring other financial avenues based on mutual interests as well as relief measures for common people.
In order to strengthen the economy, the committee agreed on undertaking concrete steps including import rationalization as well as preventing illegal currency outflows and hawala business, Radio Pakistan reported.
Emphasis will be specially made to improve agricultural output and the manufacturing sector to ensure food security, import substitution and employment.
It was resolved that people-centric economic policies with trickle-down effects on common people will remain a priority.
It was also agreed to involve all stakeholders for consensus to realize effective and fast-track economic recovery and road map.
While taking into account the efforts for mitigating the challenges of 33 million flood affectees, the forum resolved to mobilize all resources for their rehabilitation and reconstruction in coordination with the Provincial Governments and multilateral financial institutions.
Forum also appreciated the ongoing relief efforts led by the Prime Minister and federating units.