Islamabad: The federal government has once again tried to strike a balance between global financial pressure and internal economic challenges by increasing the prices of petrol and high-speed diesel. Under this move, the price of petrol has been increased by Rs 6.51 while the price of diesel has been increased by Rs 19.39 per litre.
This decision was taken after consultation with the International Monetary Fund, where officials said that the revenues from the petroleum levy are better than the target and the target is expected to be achieved by the end of the financial year.
In a briefing given to the National Assembly Standing Committee on Finance, experts from the United Nations Development Programme warned that the ongoing tensions in the Middle East could pose serious risks to Pakistan’s economy. According to the report, inflation could reach 10 to 12 percent even in a low-severity scenario, while in a severe situation, this rate could increase to 17 percent.
The briefing said that the crisis is causing an economic burden of $800 million to $1.2 billion on a monthly basis, which includes oil imports, reduced remittances, export constraints and additional logistics costs.
Moreover, the production capacity of the thermal power sector has decreased by about 32 percent due to the disruption of LNG supplies from Qatar, as a result of which the government is having to resort to limited-duration load shedding.
According to analysts, increasing geopolitical tensions could affect global supply chains, oil shipments and trade activities, the effects of which will be more pronounced on import-dependent countries like Pakistan.
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