The decision comes amid stalled negotiations with global lender IMF which is yet to release a crucial instalment of $1.1bn.
Pakistan has hiked up petrol and diesel prices after the country’s currency value plummeted this week and just days before an International Monetary Fund (IMF) visit to the country to discuss the stalled ninth review of Pakistan’s funding programme.
Finance minister Ishaq Dar said at a press conference on Sunday that petrol price will rise by 35 rupees to 249.80 rupees ($1) per litre while high-speed diesel would go up to 262.8 rupees ($1.05) per litre.
The announcement was made just 10 minutes before the new prices went into effect at 11am (05:00 GMT).
Govt announced new prices of Petroleum Products with effect from 11.00 hrs, 29 Jan ,2023.
“We will have to take the rise in international oil prices and the devaluation of the rupee into account,” Dar said. “This rise is being done immediately on the recommendation of the oil and gas regulatory authority who said there were reports of artificial shortages and hoarding of fuel in anticipation of price rises – hence this price rise is being done immediately to combat this.”
Long lines were reported outside petrol stations after people filled their tanks ahead of the announcement.
‘Insensitive’
Reaction to Dar’s announcement was met with swift condemnation and criticism of the government’s handling of the country’s economic situation.
“How will poor survive? Why [is] this nation so insensitive about simple question of life of poor and middle classes,” Shabbar Zaidi, the former chairman of Pakistan’s Federal Bureau of Revenue, posted on Twitter.
Increase of Rs 35 in petroleum. Inflationary spiral. How poor will survive? Why this nation is so insensitive about simple question of life of poor & middle classes. When this had to done then why so late? Pakistan not workable in the present economic paradigm. Rescue
Zartaj Rathore, a Lahore resident, said on Twitter: “Sadly this inflation will get the life of people. They’re [the government officials] not cutting their luxury expenditures all the burden and hurdles will always for the people who are paying huge taxes.”
Petrol, Diesel prices in Pakistan increased by Rs 35 per litre. Sadly this inflation will get the life of people. They’re not cutting their luxury expenditures all the burden and hurdles will always for the people who are paying huge taxes. pic.twitter.com/1fUYe2qmJI
Pakistan is in the midst of a balance of payments crisis amid the plummeting value of the rupee – which dove to a historic low after losing nearly 12 percent of its value against the US dollar earlier this week after an exchange cap was lifted.
The cash-strapped country is seeking to unlock a vital bailout from the IMF. However, the Washington-based lender has yet to approve the release of the crucial instalment of $1.1bn, originally due to be disbursed in November last year as part of a $6bn bailout package that was secured in 2019.
A successful IMF visit is critical for Pakistan, which is facing an increasingly acute balance of payments crisis and is desperate to secure external financing, with less than three weeks’ worth of import cover in its foreign exchange reserves.
Pakistan also suffered from a nationwide electricity outage earlier this week, linked to a cost-cutting measure, estimated to have cost the textile industry alone $70m.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
