ISLAMABAD: Pakistan’s next budget could become a key battleground over fuel taxation after the government and Jamaat-e-Islami agreed to examine proposals for reducing the petroleum levy and extending relief to lower-income households.
The agreement follows talks between Prime Minister Shehbaz Sharif and JI chief Hafiz Naeemur Rehman, with both sides deciding to establish a six-member committee to work out possible measures.
The proposed committee will include Deputy Prime Minister Ishaq Dar, Planning Minister Ahsan Iqbal and political adviser Rana Sanaullah from the government, alongside three representatives of JI.
The discussions come as fuel prices remain a major concern for households and businesses. Petrol and diesel costs affect transport expenses, the movement of goods and the cost of many everyday services.
JI has called for the withdrawal of the petroleum levy and warned of a march towards Islamabad in mid-November if substantial relief is not announced.
The government, meanwhile, has indicated that assistance must be considered within its available financial resources. Expanding targeted support could provide relief to eligible consumers, while a broader reduction in the levy would have implications for government revenue.
The committee’s task will therefore involve balancing the demand for lower fuel costs against the budgetary consequences of changing petroleum taxation.
No final abolition has been announced. The proposal will depend on the committee’s recommendations and the government’s subsequent decisions during budget planning.
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