Pakistan hikes prices of petroleum products amid decades-high inflation

An employee of a petrol station fills the tank of a customer in Karachi on February 16, 2023, after a hike in prices of petroleum products by the government. (Photo courtesy: AFP)
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Updated 16 February 2023
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Pakistan hikes prices of petroleum products amid decades-high inflation

  • Government increases price of petrol by Rs22.20 per liter, taking its total price to Rs272.20 per liter
  • Finance Minister Ishaq Dar presented a finance bill on Wednesday, increasing sales tax to 18 percent

ISLAMABAD: Pakistan increased the prices of petroleum products once again on Thursday, as the government seeks to unlock a $1.1 billion loan tranche from the International Monetary Fund (IMF) to stave off an impending default. 

Pakistan’s inflation rate surged to 27.6 percent, the highest in over four decades, on a year-on-year basis in January 2023, due to a surge in the cost of transportation and commodities, official data said. 

Pakistan revises the price of petroleum products every fortnight. The price hike follows the alarming pace at which Pakistan’s currency has devalued ever since Islamabad liberalized exchange rate policies. 

In a notification released late Wednesday night, the Finance Division said the price of petrol has been increased by Rs22.20 per liter, high-speed diesel by Rs17.20 per liter, kerosene by Rs12.90 per liter and light diesel oil by Rs9.68 per liter. 

After the price hike, petrol will now be sold across Pakistan for Rs272.20 per liter. 

“Increase in price is due to Pakistan rupee’s devaluation applicable for the calculation of the current pricing period,” the notification said. 

On Wednesday, Finance Minister Ishaq Dar tabled a finance bill in parliament— another top demand by the IMF— that increased the general sales tax (GST) rate from 17 percent to 18 percent and increased the tax on luxury items from 17 percent to 25 percent.

The government said it had undertaken the move to collect additional taxes of Rs170 billion to meet one of the IMF’s demands. Pakistan has already jacked up tariffs on electricity and gas to meet the international lender’s conditions.


Pakistan police detain teen girl radicalized online in suspected suicide bombing plot

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Pakistan police detain teen girl radicalized online in suspected suicide bombing plot

  • The girl was targeted online by the Baloch Liberation Army, which was designated as a terrorist group by the US this year
  • In 2022, a female suicide bomber affiliated with the BLA killed three Chinese teachers near a university campus in Karachi

KARACHI: Police in Pakistan detained a teenage girl who was radicalized and recruited online by an outlawed separatist group to carry out a “major suicide attack,” authorities said Monday.

No criminal charges will be filed and she will be placed under state protection as “a victim rather than a suspect,” Sindh provincial Home Minister Ziaul Hassan said at a news conference.

The girl was detained during a routine police check on buses as she traveled to Karachi, the Sindh province capital, from southwestern Balochistan province to meet a handler, Hassan said.

The girl was targeted online by the Baloch Liberation Army, which was designated as a terrorist group by the United States earlier this year. The group convinced the girl that carrying out an attack would bring her honor and recognition within the Baloch community, similar to other women who have carried out suicide bombings against security forces, Hassan said.

“The girl appeared confused when police officers asked her routine questions,” said Hassan, who added that she was taken to a police facility and disclosed months of contact with militants through social media platforms including Facebook and Instagram.

The girl appeared with her mother at a news conference but her face was covered and her name and age were withheld. Police showed a video statement she made with details about her contacts with BLA and how she agreed to carry out a suicide attack.

Pakistan’s Information Minister Attaullah Tarar condemned BLA and other separatist groups for luring people toward violence and said detaining the girl prevented a potential large loss of life.

Baloch separatists have waged an insurgency since the early 2000s seeking greater autonomy and in some cases independence from Pakistan while demanding a larger share of natural resources.

Authorities said the group has attempted to increase its use of female attackers in recent years. A female suicide bomber affiliated with BLA killed three Chinese teachers in 2022 near a university campus in Karachi.