Former finance minister Hafeez Pasha has warned that diesel could reach Rs500 per litre and petrol could reach Rs430 per litre if the situation around the Strait of Hormuz continues.
Speaking on Samaa TV programme “Nadeem Malik Live,” Hafeez Pasha said the closure of the Strait of Hormuz had made the situation extremely difficult while Brent crude prices were rising each day. He said 110 million people in Pakistan had fallen below the poverty line and warned that more than half of the country’s population could eventually fall below it.
Hafeez Pasha said higher petroleum prices would add to inflation. He said the government was currently collecting Rs85 in petroleum levy and Rs15 to Rs20 in customs duty.
He added that petrol prices in India and Bangladesh were 30% lower than in Pakistan. Hafeez Pasha said Pakistan needed to reduce customs duty and cut margins by Rs2 to Rs3. He said the current account position had remained better because of remittances. The current account deficit could reach $1.5 billion to $3 billion this year.
Hafeez Pasha warned that the country could face difficulties with its foreign exchange reserves in the coming months.
Hafeez Pasha called for relief under the Benazir Income Support Programme for owners of cars. He said Pakistan’s situation would become very difficult if the price of petrol reached $125 a barrel.
Hafeez Pasha said the country was facing a petroleum price emergency and called for the petroleum levy to be brought down to 18% immediately.
