Finance Minister Shaukat Tarin has predicted a rise in domestic petroleum prices in the coming days, while also emphasising that the government cannot artificially cut petroleum product costs.
Petroleum product prices cannot be intentionally lowered inside the country. According to Tarin, the IMF wants the provident fund's tax exemption removed. The upcoming budget, according to the Finance Minister, will be a test for the administration.
Federal Minister for Finance Shaukat Tarin remarked on the Geo News Programme that the International Monetary Fund (IMF) wants us to withdraw the tax exemption from the provident fund, which will put a burden on the poor.
As a result, he noted, the government will negotiate with the IMF on a tax exemption for provident funds.
He also stated that the IMF is opposed to the fertiliser industry receiving a gas subsidy.
In response to the rise in worldwide gasoline costs, Tarin unequivocally opposed the concept of artificially lowering fuel prices.
He added that the price of petroleum products in the country cannot be artificially decreased. If prices rise on the international market, the government will have to pass the cost on to the people.
He also expressed reservations about supporting the government's plan to keep fuel prices steady for the first 15 days of February, claiming that while the decision is popular, it will not last.
"The prime minister did not accept the summary of increasing fuel prices by Rs11 and diesel prices by Rs14," Shahbaz Gill, Special Assistant to the Prime Minister on Political Communication, stated on January 31.
As a result, for the first 15 days of February 2021, the government has agreed not to raise petroleum product prices.
The Finance Minister also discussed the upcoming fiscal year's budget, describing it as a challenge for the administration.
Due to the forthcoming general elections, he believes the administration would be under pressure while presenting the next budget.