Observer report Karachi
Advisor to the Prime Minister on Finance Shaukat Tarin has said that all taxes on petrol have been abolished and that all benefits from the reduction in oil prices will be transferred to the people.
Talking to media in Karachi, Tarin said if we do not refinance, something else will have to be done. “The real effective exchange rate should be close to 165, 166. Our money is undervalued by Rs10,” he said, adding that there were rumours that lockers would be seized, but no such thing will happen.
Tarin said that our problem is with the lower middle class because they are being exploited. “Our problem is not of poverty, but of inflation,” he said, adding that according to the World Bank, poverty in the country has decreased by 1%.
The finance advisor said that the government will not allow any increase in taxes, and that no new taxes will be imposed.
“Only tax exemptions will be abolished and all taxes on petrol have also been abolished. All the benefits of reduction in oil prices will be passed on to the people,” he said. Speaking about the rupee, Tarin urged people not to pay attention to rumours.
“The value of the rupee will not decrease,” he assured, warning those who are thinking that they will earn from the dollar that they will be hit hard when the value of the dollar comes down.