Minister of State for Petroleum Dr Musadik Malik has said that while implementing the latest hike in the gas tariff, “the government tried its best not to impose burden on the low-income segment.”
Speaking to media on the sidelines of the second and last day of the business conference, The Future Summit, in Karachi at a local hotel on Thursday, he said that “we separated the poor and rich segments while implementing hike in gas tariff to safeguard the low-income segment from its impact.”
However, the minister admitted that low-income segment of Pakistan was facing harsh times. According to him, 60% of the public of Pakistan will remain unaffected from the gas price hike.
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“In fact, the low-income segment might see its bills going down.”
Echoing former finance minister Dr Miftah Ismail’s views, Malik said that Pakistan was witnessing an elite capture.
“Pakistan is different for high-income segment and low-income segments,” he said. “The gas tariff has increased largely for high-income segment.”
During his speech, Malik was critical of the developed countries for fancying development and progress, which he believed have put most of the world’s population - around 5 billion - at peripheries.
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The minister said that the development has not been inclusive and countries like Pakistan were paying the price despite having “zero” contribution in carbon emissions and lately, it became the third most affected country from global warming.
“This is because Pakistan is situated at the foot of Himalayas and prone to floods when the ice melts on the mountains.”
Malik expressed concern that the development - such as biotech, nano technology would remain confined to the elite states and countries such as Pakistan would remain at the mercy of God similar to what happened during the Covid-19 pandemic.
Russian oil
Meanwhile, the minister said that an agreement has been signed with Russia for supply of cheap oil and Pakistan will begin receiving shipments from March 2023.
Speaking about the Pakistan-Iran gas pipeline project, he said that Pakistan could face international sanctions, “however, Pakistan can go ahead with the project if it abides by international laws.”
Talking about expected resumption of International Monetary Fund (IMF) programme following the announcement of a supplementary finance bill by the government, he said that the leadership signed it however, the terms were agreed by the previous government.
Malik also defended delaying the IMF programme and said that the government was trying to avoid it to ensure the welfare of people.
Former finance minister Dr Shamshad Akhtar said that “the level of foreign exchange reserves is worrisome. Inflation is at a historic high. PSX market capitalisation is at the lowest. Policy inconsistency has eroded the confidence of investors.”
“The growth has faltered in the face of frequent economic disruptions.”
World Bank Country Director for Pakistan Najy Benhassine said taxes on land and properties should be increased in major cities of the country as part of economic reforms.