Observer Report Karachi
Finance Adviser Shaukat Tareen on Sunday hinted that petrol will become more expensive as the Pakistani rupee continues to depreciate against the US dollar.
While talking to media in Karachi, Shaukat Tareen predicting that petrol would become more expensive, said that if global prices go up, then petrol will also become more expensive in Pakistan.
Shaukat Tareen said that ‘satta mafia‘ is involved in the depreciation of the rupee. The dollar is being smuggled to Afghanistan and the government is going to tighten the noose around the mafia.
The adviser said that the government is working on a long-term strategy to strengthen the national economy on a sustainable basis.
Shaukat Tarin said that the government will not be able to provide relief to the public in case of an increase in fuel prices in the international market.
“There is no relief in it. Whatever [price hike] comes will be passed through [to the people],” he said. According to Tarin, the government does not have space to provide “further relief” as he has already brought down sales tax on petrol from 17 per cent to 1.6 per cent.
According to Tarin, as per the real effective exchange rate, the value of the Pakistan rupee against the dollar should be Rs166 but it was being manipulated by the “speculators”.
Due to speculators, the rupee is devalued by Rs9 at least, he said, adding that he has asked the State Bank of Pakistan to take measures to end the speculative trading.
According to Tarin, the rupee is also being devalued due to the Afghans who are buying dollars from the market.
The finance adviser claimed that the Pakistani economy could witness more than five per cent growth during the current financial year.
Tarin said the revenue had witnessed 36 per cent growth, adding that manufacturing growth was in double digits as well. Pakistan also reported bumper crops this year, he added.
We have 32pc growth in income tax, and our growth is all-round, including sales tax, income tax and customs. We will try to increase revenue target to 11pc from 9pc and then 14pc after it,” Tarin said.
Speaking about the hike in the price of food items, the finance adviser said that the food prices were on the rise due to the coronavirus pandemic.
“The prices of food increased globally. Pakistan imports some important food items and our common citizens are affected due to the increase in prices.”
Tarin admitted that Pakistanis have poor purchasing power in contrast to other countries. “We are trying to fix it,” he added.
Tarin said that IMF wishes to announce the deal on its own. He said that negotiations this time around, compared to March, have been “much better”.
The PM’s advisor said Pakistan can expect a financial support package amounting to $3 billion from Saudi Arabia “in the next few days”.
Tarin, in his address, said that the government is working on a long-term strategy to strengthen the economy on a sustainable basis. “We need progress that lasts 20 years, not five years,” he said.
He said the government stands with the common man and is taking every possible measure to facilitate the vulnerable segments of the society.