Govt says oil subsidy unsustainable, focuses relief on poor

ISLAMABAD: Federal Minister for Climate Change and Environmental Harmony Mosaddiq Malik has asked how long can oil be bought at a high price and sold at a low price? It is not possible to continue the subsidy continuously.

Mosaddiq Malik, while holding a press conference, said that the government is facing many challenges. When oil is bought at a high price and sold at a low price, the money runs out. How long can oil be bought at a high price and sold at a low price?

The Federal Minister said that the government is trying to provide relief to the people. There has been a war in the entire region for three to four weeks. Unlike previous governments, the country has not allowed banks to become corrupt. A subsidy of Rs 129 billion was given to stabilize the prices of petroleum products, but it is not possible to continue the subsidy continuously. Prime Minister Shahbaz Sharif is determined to provide targeted subsidies to the people.

He further said that when there are no dollars left to bring oil, where will the oil come from? Prime Minister Shahbaz Sharif has said that prices should be increased for the rich, not for the poor. The government has become an iron wall to stop the storm of oil and petroleum product prices and inflation. The government has spent about Rs 129 billion on subsidies.

‘We have stockpiled as much as we have to import to serve the people. If remittances start decreasing, how long and how much will they decrease before we put the brakes on? The poor were saved so that the rich can bear their own burden.’

Mosaddiq Malik said that motorcyclists will get a subsidy of Rs 100 per liter for up to 20 liters of petrol per month, the development budget has been cut and the salaries of the ministers for 6 months will be used for relief, special measures have been taken for uninterrupted supply of petroleum products, oil prices have been increased keeping in mind the global context.

He further said that the government has made bus travel in cities free, a subsidy of Rs 1,500 per acre has been provided to farmers, and those who are driving vehicles worth Rs 10 million have been given some additional burden, saving everyone else.