Prime Minister Shehbaz Sharif has approved to implementation of several tough decisions, including raising Rs150-200 billion by imposing additional taxes, increasing gas and electricity tariffs, and bringing a mini-budget to end the deadlock in talks with the IMF.
On Wednesday, an online meeting was held under the chairmanship of the Prime Minister, which lasted for three and a half hours in which many important decisions were taken by the government.
According to sources, the government will have to increase electricity prices for the current financial year, increasing the current tariff in the gas sector from 650 per mmBtu to an average of 1100 mmBtu.
As per the report said, “At present, the country is facing a circular debt of Rs 1640 billion, out of which the government will have to recover Rs 800 to Rs 850 billion through large dividends of NNGPL and SSGCL.”
In addition, the federal excise duty on sugary drinks and cigarettes is also considering an increase in GST on petroleum products.
However, Finance Minister Ishaq Dar strongly opposed the imposition of 17 percent GST on petroleum products and said that it will bring severe inflation.