Miftah Ismail, Minister of Finance, stated on Wednesday that the agreement with the International Monetary Fund (IMF) will be finalised in the coming days, and that relief will be provided to the masses following the drop in international fuel prices.
It is worth noting that the price of petrol in the international market has risen from $125 per barrel two and a half months ago, and is now steadily declining, suggesting that the price of petrol in the country will fall.
Miftah Ismail, speaking on a state TV programme, stated that if petroleum subsidies had been provided, the country would have gone bankrupt, adding that the government’s first priority was to save Pakistan from default.
The minister stated that the government made all difficult decisions in order to avoid default, and that Imran Khan announced petroleum subsidy after realising that his government’s days were numbered, whereas the previous government used NAB laws against political opponents. “The country’s inflation increased due to the incompetence of Imran Khan’s government,” he added.
Read more: Abolishing petroleum subsidy to avoid default, Miftah
The minister went on to say that the PTI government signed an agreement with the IMF and then broke it, and that the previous government’s many policies increased the current account deficit. “We controlled food prices as soon as we came into power,” he said, adding PTI exported sugar for Rs 48 and imported it for Rs 96, while the super tax was imposed on the wealthy.
Oil prices continue to fall.
Brent crude fell below $100 per barrel on Wednesday as investors worried that a potential recession would reduce demand.
Brent North Sea, Europe’s benchmark crude contract, fell 3.3 percent to $99.39 per barrel in mid-afternoon trade, while WTI oil fell 3.3 percent to $96.12.
Read more: How can Pakistanis save petrol while driving?
Prices had already fallen Tuesday on fears that a slowing global economy would reduce demand for petroleum products, with WTI breaking through the crucial $100 level.
In the event of a prolonged global economic downturn, Citi analysts predict that Brent could reach $65 later this year.