Oil subsidy was benefiting mostly affluent people: Miftah Ismail
Finance Minister Miftah Ismail claimed the oil subsidy was benefiting mostly affluent people which was withdrawn by the government.
ISLAMABAD: Finance Minister Miftah Ismail has claimed that oil subsidy was primarily benefiting affluent people which was withdrawn by the federal government in this context.
Miftah Ismail, while being interviewed by Dunya News, expressed his thoughts that the subsidy on oil was ended by the government as it was benefiting the most affluent people.
He claimed that the government is providing flour and sugar at fixed rates which is realistic relief to the common people. Ismail further claimed that the government would control inflation by presenting a pro-people and business-friendly budget.
The finance minister said that the onus of purchasing the LNG at high rates is on Imran Khan as his government delayed in buying the commodity from the international market.
He said that the value of the rupee would gain stability and in near future, the country’s reserves will also increase significantly. He said the government is likely to reach an agreement with International Monetary Fund (IMF) soon.
Commenting over Ismail’s statement, Kamran Shahid later tweeted, “Apology to viewers that when the finance minister said the below lines in my show I should have challenged the point and tell that petrol and diesel affects all especially the poorest.. in addiction to their vehicles the price hike of petroleum also bring inflation by all means.
apology to viewers that when the finance minister said the below lines in my show I should have challenged the point and tell that petrol and diesel affects all especially the poorest.. in addiction to their vehicles the price hike of petroleum also bring inflation by all means https://t.co/PcohjGNsrc
— Kamran Shahid (@FrontlineKamran) June 2, 2022
Russian oil argument
Earlier, Miftah Ismail had given a new logic for not purchasing Russian oil as he expressed fear of facing sanctions from different countries after European Union leaders agreed on an embargo on Russian crude oil imports.
Miftah Ismail, while talking to CNN’s Becky Anderson, said Pakistan would be open to buying Russian oil at cheaper rates if the opportunity arises, provided that no sanctions are imposed because of the deal.
“It is very difficult for me to imagine buying Russian oil. At this point, I think that it would not be possible for Pakistani banks to open LCs or arrange to buy Russian oil. And nor has, for that matter, the Russian Federation offered to sell us oil.”
On being asked if Pakistan is open to buying oil and wheat from Russia due to rising food and oil prices, the finance minister said, “We have talked about buying wheat from Russia and the previous government talked about buying oil from Russia but I think Russia is under sanctions.”
Ismail further said, “We have asked Ukraine and Russia, whichever country is willing to sell us wheat, we will be happy to buy from Ukraine or Russia.”
Miftah Ismail complains about fuel subsidy burden; Hammad Azhar presents solution
He also highlighted that “the previous government wrote a letter to the Russian Federation. The letter was not responded to. Russia has not offered us any oil and is now under sanctions right now.”
According to the finance ministry, the government has decided to keep petroleum prices unchanged, sparking fears IMF might not release the $1 billion loan tranche.
Hammad Azhar’s reply to Ismail
Pakistan Tehreek-e-Insaf (PTI) leader Hammad Azhar responded to Ismail’s statement and said, “They started offering discounted oil in mid-march and we immediately started talks with them on the subject. On 29th March our Ambassador in Moscow told me they wanted a letter in writing also and on 30th March it was delivered.”
The former energy minister questioned, “Now why have you waited for 50 days doing nothing?”
He was replying to a tweet from Ismail which read, “Bhai please listen to my interview again. I did say your govt wrote a letter. But I said no response ever came. (I didn’t say that you waited more than a month after IK’s visit to write the letter & then too when you knew you’d lose the VNC & that it was only done for politics.)”
