Govt paying Rs14b monthly subsidy on oil

ISLAMABAD—The government was paying Rs 14 billion per month as subsidy to keep the oil prices at present level and provide solace to poor, Interim Finance Minister Dr Salman Shah said Friday. Talking to newsmen he said, global oil prices have increased to unprecedented level from $20 to $100 per barrel within a few years. The government will have no option but to ultimately pass on the increase to consumers as huge subsidy is increasing the budget deficit.
He said, food prices in Pakistan are increasing at much cheaper rates of 10 to 11 percent as compared to global increase rate of 20 to 25 percent per annum. Ultimately food prices in Pakistan will come in line with world food prices as current price spiral was a global phenomena.
As many as 1.5 million tonnes wheat was being imported from abroad to meet the supply situation.
He said, wheat is available in country at Rs 16 per kg while world price of wheat is Rs 30 kg. He said 35 percent regulatory duty has been imposed on wheat product to check its exports.
He said the next government is going to inherit a very healthy economy. Economy is in very strong and solid position and it would continue to grow and prosper and if we continue current policies.
Regarding electricity shortage he said power consumption in country has increased at mammoth ratio. Efforts were underway to enhance the production to meet the shortage. He stressed national consensus on building new dams to increase cheap power production in the country.—Agencies