ISLAMABAD: Pakistan’s Economic Coordination Committee has approved a nine rupee per liter hike in the price of petrol in a move that threatens to keep consumers away from all but basic items.
In April, Pakistan hiked petrol prices by 6 rupees to 98.88 rupees ($0.70) a liter, bringing pain to skilled workers who earn 1,000-1,300 rupees ($7.08-9.20) a day and laborers who make up to 600-800 rupees.
If the EEC’s decision is approved by cabinet, the new price of petrol will be Rs108 per liter, putting a severe burden on consumers as the fasting month of Ramadan nears.
Final approval for the hike will come from Prime Minister Imran Khan who has repeatedly said he does not want to pass on the burden of the increase in international prices of oil to the public.
Inflation is already at its highest in more than five years, alarming many Pakistanis who voted for Khan’s promise to eradicate poverty, create jobs and build an Islamic welfare state.
The government is currently wrestling with a ballooning current account deficit as it seeks a 13th bailout package from the International Monetary Fund.
The central bank forecasts growth at 3.5-4 percent in the 12 months to end June, well off a government target of 6.2 percent. The rupee has lost over a quarter of its value in the past year.
