PM announces Rs. 10 cut in petrol, Rs. 5 in power prices; assures no increase till budget

Islamabad: Prime Minister Imran Khan on Monday unveiled a relief package, including Rs 10 per litre reduction in petroleum prices, Rs 5 per unit cut in electricity tariff and some other measures.

“The government has decided not to increase the prices of petrol and diesel as well as electricity tariff till the next budget,” Imran Khan said in his televised address to the nation.

The prime minister also announced to enhance the cash assistance, provided to eight million families under the government’s Ehsaas Programme, from the current Rs 12,000 to 14,000 to help the poor people.

He announced an internship programme for the unemployed youth, under which those with a graduate degree, would be offered Rs 30,000 per month through a transparent and merit-based system.

The prime minister in his 40-minute speech spoke at length on multiple issues of national importance, including the foreign policy, amendment in the Prevention of Electronic Crimes Act (PECA) Ordinance, and his government’s challenges and achievements including on the economic front.

Imran Khan announced 2.6 million educational scholarships, saying Rs 38 billion would be allocated for the purpose.

He also announced various incentives for the promotion of the information technology (IT) sector, including 100% tax exemption for companies and freelancers, 100 % waiver on repatriation of capital and foreign exchange, and elimination of capital gains tax for startups.

The prime minister said the investment from the overseas Pakistanis, including through joint ventures, would enjoy tax-holiday for five years. No questions would be asked from those who would establish industries.

He further said that the government would spend Rs 460 billion for the provision of interest-free loans to the youth under the Kamyab Jawan Programme to start businesses, low-income groups to construct their own houses, and farmers.

The prime minister reminded that his government inherited a weak economy burdened with huge internal and external deficits, and foreign exchange reserves were only enough for three weeks of imports.

He said, “When we came out of a difficult time the world was hit by the coronavirus – the biggest crisis of the century.” The economies of countries like India and Europe suffered setbacks due to the pandemic.

Pakistan, he added, effectively dealt with the coronavirus and subsequent lockdowns, supply chain disruptions and commodity prices hikes.

Talking about the economic malaise suffered by the country, he said Pakistan was using imported petroleum products, cooking oil and pulses, besides generating electricity from imported fuel.

He recounted that the United States, Canada, the United Kingdom and Turkey were hit by highest inflation hikes in the last 30-40 years.

He mentioned that inflation during the past tenures of Pakistan Peoples Party was more than 10 percent, and hovered around 10 percent while the of Pakistan Muslim League-Nawaz was in government.