Targeted subsidy on POL products under study: Hafeez

Finance Minister Dr Abdul Hafeez Sheikh on Friday said the government is considering introducing targeted subsidy on petroleum products if oil prices further escalate in the international market.
Talking to media here on Friday after addressing the golden jubilee ceremony of Institute of Chartered Accountants of Pakistan (ICAP), Hafeez Sheikh said that a proposal is under consideration with respect to giving targeted subsidy which may be implemented in case of further increase in the oil prices in the global market. He said that rich people are also benefiting from the present cut in oil prices.
Replying to a question about the decision to withdraw half of the oil price increase, he said that the decision was taken in view of political consideration in line with the aspiration of people. "We are a coalition government, hence coalition partners are also taken along in decision making, he added.
Hafeez said oil prices in the international market have crossed 100 dollars per barrel against the budgeted projection of 72 dollars per barrel for which no one could be blamed.
Addressing the ceremony, he said successive governments have failed to mobilise revenue for which a single government could not be held responsible. The minister said that politics on the economic issue can put the future of coming generations at stake. He said the country needs political consensus to face the challenges on economic front. The minister said the country was passing through transition with independent judiciary and vibrant media. He said that with strong scrutiny against corruption no government would be able to hide the facts from the public.
The minister said the government has taken a historic decision by transferring Rs 400 billion to the provinces with a single stroke of pen under new NFC Award. Now the provinces will be accountable for utilisation of funds to people.
Hafeez said the economy was in poor shape with fiscal deficit as high as 7.6 percent and inflation over 25 percent when the present government took over in 2008. The minister said that today macroeconomic indicators are stabilising with efforts on to bring the fiscal deficit below six percent and inflation at 12 percent. The foreign exchange reserves are improving and so are exports and remittances.