Pakistan’s outgoing administration massively increases petrol, diesel prices amid IMF program

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. (AFP/File)
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Updated 01 August 2023
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Pakistan’s outgoing administration massively increases petrol, diesel prices amid IMF program

  • Ishaq Dar says the government wanted to provide relief to people but took the decision to safeguard ‘national interest’
  • The new prices of high-speed diesel and petrol now stand at Rs273.40 and Rs272.95, respectively, after the announcement

ISLAMABAD: Pakistan’s outgoing government announced a massive increase in the prices of petrol and diesel on Tuesday, saying the decision was taken to safeguard the “national interest” since the country was in a stringent International Monetary Fund (IMF) program and had to abide by its commitments.

Pakistan determines the prices of petroleum products on a fortnightly basis, taking into consideration the volatility in the international oil market and the value of the US dollar.

In a brief televised statement, the country’s finance minister Ishaq Dar announced an increase of Rs19.95 and Rs19.90 per liter in the rates of petrol and diesel, respectively.

He was expected to share the revised rates with the people a day earlier but decided to delay the announcement.

“There was a significant increase in the prices of petroleum products in the international markets in the last 15 days,” he said before announcing the new prices. “The rate of high-speed diesel increased from $96.26 on July 16 to $111.46 on the closing of July 31. Similarly, the price of petrol surged from $89.14 on July 16 to $97.49.”

“The government checked OGRA’s [Oil and Gas Regulatory Authority’s] working [of the revised rates of petroleum products] last night until about 3 am,” he continued. “This also caused the delay in the announcement since we were trying to determine if there was a way we could reduce the [proposed] prices. Then we also discussed this with the prime minister in the morning who obviously said that we should try to do whatever was best for the people.”

Dar said Pakistan was part of the IMF program, and everyone was aware of the commitments it had made with the international lender regarding the petroleum levy.

He added the previous administration led by prime minister Imran Khan had also deviated from the IMF program, which led to a great deal of financial challenges to the country.

“It is necessary to implement the minimum petroleum price increase that has been calculated in the country’s national interest,” he said.

After the government’s announcement, the new prices of high-speed diesel and petrol now stand at Rs273.40 and Rs272.95, respectively.

Dar said these rates would be implemented with immediate effect.


Pakistan says Qatar to elevate economic partnership to ‘higher strategic level’

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Pakistan says Qatar to elevate economic partnership to ‘higher strategic level’

  • Qatari emir accepts invitation to visit Pakistan later this year, Sharif’s office says
  • Doha talks also addressed rising tensions between Pakistan and Afghanistan

ISLAMABAD: Pakistan said on Tuesday Qatar had agreed to elevate bilateral economic cooperation to a “higher strategic level” during talks between Prime Minister Shehbaz Sharif and Qatari Emir Sheikh Tamim bin Hamad Al Thani in Doha, according to a statement from the Prime Minister’s Office.

The meeting with Qatar’s head of state marked the highest-level engagement of Sharif’s visit and comes as Islamabad seeks to attract Gulf investment to support economic stabilization under a $7 billion International Monetary Fund (IMF) program while coordinating with regional partners on rising security tensions.

Qatar is a key economic partner for Pakistan, hosting nearly 300,000 Pakistani workers and previously announcing plans to invest $3 billion in sectors including transport, aviation, energy, health, media and technology. The two countries also maintain defense cooperation and structured political and business dialogues.

“His Highness Sheikh Tamim bin Hamad Al Thani reiterated Qatar’s commitment to a deepening economic partnership to a higher strategic level,” Sharif’s office said in the statement.

According to the statement, the two leaders reviewed the entire spectrum of bilateral relations and reaffirmed their commitment to strengthening longstanding ties.

The Qatari emir also accepted Sharif’s invitation to visit Pakistan later this year, the Prime Minister’s Office said.

Earlier during the visit, Sharif held talks with Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, where discussions focused on expanding cooperation in trade and investment, energy, defense, manpower and labor, and culture.

“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.”

Sharif also met Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA), where he highlighted Pakistan’s investment-friendly reforms and invited Qatari investors to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing, according to the prime minister’s office.

The business outreach reflects Islamabad’s broader push to convert political goodwill with Gulf partners into tangible investment inflows as it works to sustain macroeconomic stability and growth.

TENSIONS WITH AFGHANISTAN 

The Doha talks also addressed rising tensions between Pakistan and Afghanistan following cross-border military exchanges in recent days.

Pakistan last week carried out airstrikes inside Afghanistan against what it described as Tehreek-e-Taliban Pakistan (TTP) targets, after blaming recent militant attacks in Islamabad, Bajaur and Bannu on fighters operating from Afghan territory, which Kabul denies. Afghan Taliban authorities said the strikes killed civilians and described them as a violation of Afghanistan’s sovereignty.

The issue also came up during a separate meeting between Sharif and Qatar’s Deputy Prime Minister Sheikh Saoud Al-Thani.

“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.”

Similar cross-border strikes last year triggered weeklong clashes before Qatar and Turkiye helped mediate a tenuous ceasefire between Islamabad and Kabul.