Finance Minister Muhammad Aurangzeb has said that austerity measures are properly being enforced to ensure the availability of funds aimed at providing public relief amid the current situation arising from tensions in the Middle East.
Speaking in the National Assembly today, he mentioned that the prices of petroleum products were not increased for three weeks. For this purpose, a blanket subsidy of one hundred and twenty-nine billion rupees was provided.
Federal Finance Minister Muhammad Aurangzeb has said that in order to provide relief to masses, a subsidy of Rs 129 billion was given in fuel prices from March 14 to April 4, moreover, a targeted subsidy was also being provided to bikers.
The Finance Minister said that the government is committed to providing maximum relief to the people and in this respect uplift funds were being cut under the austerity campaign.
FM Aurangzeb said that steps were being taken to subsidize small farmers. He added that rationing has already begun in many countries, in the UAE, diesel has become 70 percent more expensive and petrol 30 percent more expensive.
He said the government is now providing targeted subsidy to the deserving segments of the society including motorcyclists, trucks and the public transport. He said small farmers are also being taken care of. He added the government also reduced the PSDP by one hundred billion rupees to provide funds for the public relief.
As the house held discussion on the prices of petroleum products, the Finance Minister welcomed some constructive suggestions both from the treasury and opposition benches. He agreed with the suggestion of the importance of building strategic reserves of fuel.
Responding to a Calling Attention Notice, moved by Syed Naveed Qamar and others in the National Assembly, Defence Minister Khawaja Asif underscored the importance of transitioning to cheaper energy sources, including solar power, to reduce the energy costs.
He, however, said Pakistan is still bound by power purchase agreements signed with IPPs.
In her remarks, Minister of State for Climate Change Shezra Mansab Ali Khan Kharal said the government is encouraging clean energy including solar power. She said changes to the net metering policy are for new prosumers while existing agreements will be honoured till their original term expires.
She further said we are no longer importing coal for power generation, emphasizing that local coal is being used for this purpose.
Responding to a Calling Attention Notice, Minister of State for Finance Bilal Azhar Kayani said growth has been witnessed in tax revenue collection during the eight months of current fiscal year.
He said the government is taking measures to improve the tax net as well as to mitigate the impact of US-Iran war on the people.
Bilal Azhar Kayani noted that, given the current situation, the government reduced the petroleum levy, bringing the levy on diesel down to zero. He said the government has also ensured the supply of petroleum products in the country. The House has now been adjourned to meet again on Wednesday at five pm.