In Pakistan, petrol price hits record high of PKR 272 per litre: Report | World News

Pakistan has increased the price of petrol to a new high of PKR 272 per litre, while diesel price has been hiked by PKR 17.20 to PKR 280 per litre, inflicting more misery on the citizens already battling hiked essential prices. The Shehbaz Sharif government’s move comes hours after it tabled a supplementary finance bill in the Pakistan National Assembly, proposing to hike goods and services tax to 18 per cent to help raise PKR 170 billion in revenue to ease economic crisis. According to Geo TV report, the price of petrol has been increased by PKR 22.20 to a new high of PKR 272 per litre, the Pakistan Finance Division stated. Kerosene oil will now cost PKR 202.73 per litre. The light diesel oil will cost PKR 196.68 per litre.The hike in oil prices was among the preconditions of the International Monetary Fund, which will result in a hike in inflation. The prices of daily use items have already skyrocketed with items milk costing PKR 210 per litre and chicken meat being sold at PKR 780 per kg. ALSO READ: Crucial $1.1 billion IMF deal eludes Pakistan for now; talks continueOn Wednesday, a senior economist with Moody’s Analytics said inflation in Pakistan could average 33 per cent in the first half of this year before trending lower, and a bailout by the IMF is unlikely to put economy back on track.

“Our view is that an IMF bailout alone isn’t going to be enough to get the economy back on track. What the economy really needs is persistent and sound economic management,” senior economist Katrina Ell told Reuters.

Islamabad has held talks with the IMF for the release for bailout funds as it has reserves to meet only three weeks of imports. The supplementary bill moved in Pakistan Assembly by finance minister Ishaq Dar proposed exemption of GST from daily use items like wheat, rice, milk and meat to reduce the impact of budget.

The finance bill proposed raising taxes on luxury items to 25 per cent, besides raise in taxes on first and business-class air travel, sugary drinks and cigarettes. The Shehbaz Sharif regime has also proposed a withholding tax on marriage halls and events at ten per cent, Reuters reported.