Pakistan hikes prices of petroleum products amid decades-high inflation
Pakistan hikes prices of petroleum products amid decades-high inflation/node/2252091/pakistan
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)
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.
ISLAMABAD: Pakistan and Qatar on Tuesday agreed to deepen their strategic and economic cooperation during high-level talks between Prime Minister Shehbaz Sharif and his Qatari counterpart Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sharif’s office said.
Sharif visited Qatar along with a high-level delegation on the invitation of Qatari emir Sheikh Tamim bin Hamad Al Thani. The Pakistani premier also held meetings with Qatar’s trade and defense ministers to discuss cooperation in various domains.
The visit came at a time when Pakistan is seeking closer economic engagement with Gulf partners amid its broader push to stabilize the economy and attract investment, while maintaining security and defense cooperation with key regional states.
During their meeting in Doha, PM Sharif and Qatar’s Sheikh Mohammed discussed bilateral relations and exchanged views on regional and international developments, according to the Pakistan prime minister’s office.
“They reaffirmed the strong brotherly relations between Pakistan and Qatar and expressed satisfaction at the growing momentum in political, economic and institutional ties,” Sharif’s office said.
“Discussions focused on enhancing cooperation in the fields of trade and investment, energy, defense, manpower and labor and culture, with both sides stressing the importance of their task force to accelerate cooperation in all these areas.”
Pakistan and Qatar maintain strong trade and investment ties. In 2022, the office of Qatar’s emir said the Qatar Investment Authority planned to invest $3 billion in Pakistan, targeting sectors including transport, aviation, education, health, media, technology and labor.
Nearly 300,000 Pakistanis live and work in Qatar, according to Pakistan’s foreign office, with many employed in health, education, engineering and public services, as well as construction and transport. The two countries engage through forums such as the Bilateral Political Consultations and the Joint Ministerial Commission.
Sharif said he had productive discussions with Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, on how the two sides could transform their brotherly ties into mutually beneficial economic relationships.
“We also took stock of the regional situation,” he said on X. “Pakistan and Qatar will continue to work together for peace and stability in the region and beyond.”
Prime Minister Shehbaz Sharif (second right) meets the Qatari Emir Qatar’s emir Sheikh Tamim bin Hamad Al Thani (left) in Doha, Qatar, on February 24, 2026. (PID)
DIALOGUE WITH AFGHANISTAN
Earlier, Sharif and Qatar’s Deputy PM Sheikh Saoud Al-Thani discussed the situation in Afghanistan and called for dialogue to support regional stability.
The meeting took place amid renewed tensions after Islamabad carried out airstrikes last week on what it described as Tehreek-e-Taliban Pakistan (TTP) targets inside Afghanistan. Kabul said the strikes killed civilians and vowed to respond to what it called a violation of its sovereignty.
“Regional developments were also discussed, in particular the situation in Iran and Afghanistan,” Sharif’s office said in a statement. “Both sides emphasized the importance of dialogue, de-escalation and collective efforts to promote peace and stability in the region.”
This was the second time in less than six months that Pakistan conducted airstrikes in Afghanistan. The last strikes triggered heavy, weeklong clashes between the neighbors along their border before Qatar and Turkiye mediated a ceasefire between them in Oct. last year.
Separately, Sharif held meetings with Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA), highlighting Pakistan’s investment-friendly reforms.
He invited QBA members to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing, his office said.
