ISLAMABAD: The Pakistani government has increased the prices of petroleum products by as much as Rs35 per liter, Finance Minister Ishaq Dar announced on Sunday, as the South Asian country struggles to meet International Monetary Fund’s demands to resume its $7 billion loan program.
The cash-strapped South Asian nation has been desperately looking for external financing as its foreign exchange reserves have depleted to a staggering $3.7 billion — barely enough to provide three-week import cover.
The 9th review of Pakistan’s $7 billion IMF loan program has been pending since September last year, primarily because of the tough preconditions set by the global money lender. One of the prerequisites is to achieve a petroleum development levy (PDL) to the tune of Rs855 billion ($3.4 billion) by June 2023.
Dar said the government had to increase the prices of petroleum products, considering the recent devaluation of Pakistani currency and up to 11 percent in global fuel prices.
“A decision has been made that petrol and diesel prices will be increased by Rs35 each, and kerosene oil and light diesel oil will be increased by Rs18 each,” he said in his televised comments.
Pakistan revises petroleum prices every fortnight, but the hike two days in advance of the scheduled revision shows the government’s despair for the resumption of the IMF program to keep the frail economy on track.
Following Sunday’s revision of prices, petrol will now be available at Rs249.8 per liter, high-speed diesel at Rs262.8, kerosene oil at Rs189.83 and light diesel oil at Rs187 per liter, Dar announced.
“These prices will be applicable from 11am on Sunday, 29th January,” he added.
The hike follows more than 12 percent depreciation in the value of the local currency this week and is expected to further increase inflation in Pakistan, which was already hovering above 24 percent in December.
Pakistan jacks up prices of petroleum products by as much as Rs35
https://arab.news/y6cmz
Pakistan jacks up prices of petroleum products by as much as Rs35
- Finance chief says government had to raise prices after currency devaluation, global hikes
- The Pakistani currency this week lost more than 12 percent of its value against the greenback
Pakistan deputy PM speaks with Iranian FM as Saudi Arabia intercepts missiles and drones
- Ishaq Dar expresses concern over evolving regional situation as both officials agree to remain in contact
- Pakistan earlier reminded Tehran of its mutual defense pact with Saudi Arabia during diplomatic outreach
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with Iranian Foreign Minister Seyyed Abbas Araghchi on Friday amid escalating tensions in the Gulf, including recent missile and drone attacks targeting Saudi Arabia that were intercepted by the Kingdom’s air defenses.
The call comes as Islamabad remains in contact with both Tehran and Gulf states to prevent the widening Iran conflict from spilling further across the region, particularly after attempted strikes on Saudi territory, a sensitive development for Pakistan, which signed a mutual defense pact with the Kingdom last year.
Pakistan’s foreign ministry said Dar raised concerns about the evolving regional situation during the conversation.
“Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar spoke this evening with the Foreign Minister of Iran, Seyyed Abbas Araghchi,” the ministry said in a statement.
“The DPM/FM expressed concern over the evolving regional situation. The two agreed to remain in touch on the developments,” it added.
The ministry did not share details of the conversation, though it came amid fast-moving developments in the region, with Saudi Arabia saying its air defenses intercepted multiple missiles and drones early on Friday.
Earlier this week, Prime Minister Shehbaz Sharif’s adviser on political affairs Rana Sanaullah said Pakistan was in contact with Iran to discourage attacks on Gulf countries and prevent misunderstandings.
“Such attacks should not be carried out from Iran’s side,” he told Geo TV.
Prior to that, the deputy prime minister told Pakistan’s Senate that Islamabad had engaged both Iran and Saudi Arabia at the outset of Iran’s retaliation in the region, reminding Tehran of its defense agreement with Saudi Arabia and conveying assurances from Riyadh that Saudi territory would not be used against Iran.
Pakistan says its administration is striving to end the conflict, though the United States-Israeli strikes on Iran, which triggered the war and led to its spillover, have only intensified.
Iranian President Masoud Pezeshkian said on Friday some countries had begun mediation efforts but insisted Tehran would defend its sovereignty.
Meanwhile, US President Donald Trump has called for Iran’s “unconditional surrender” on his Truth Social platform as the confrontation shows little sign of easing.
