Pakistan: PM Imran Khan announces cut in petrol, power prices in relief package; assures no increase till budget

Pakistan Prime Minister Imran Khan, in a big initiative to protect the masses from the impact of global inflationary trends, on Monday unveiled a major relief package, including a Rs10 per litre reduction in petrol prices, Rs5 per unit cut in electricity tariff among 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.

Cash assistance for families increased

The prime minister also announced to enhance the cash assistance, provided to eight million families under the government’s Ehsaas Programme, from the current Rs12,000 to 14,000 to help the poor.

He announced an internship programme for the unemployed youth, under which those with a graduate degree, would be offered Rs30,000 per month through a transparent and merit-based system.

In his address to the nation on Monday, the prime minister 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.

Khan announced 2.6 million educational scholarships, saying Rs38 billion would be allocated for the purpose.

100% exemptions for IT sector

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

Tax holiday for overseas Pakistanis

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 Rs460 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.

Covid-19 crisis

“When we came out of a difficult (economic) 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.

Economic success

Khan also highlighted the recognition of Pakistan economic success by international financial institutions.

The Economist magazine, he said, noted that Pakistan was among the top three countries, which had effectively tackled the coronavirus. The World Bank, World Economic Forum and World Health Organization also appreciated its efforts during the coronavirus pandemic, he observed.

Bill Gates appreciated Pakistan for its achievements in the health sector, he said, adding no polio case was reported in the last one year.

Pakistan’s economy grew by 5.6 per cent as verified by the World Bank. The remittances from overseas Pakistanis rose to $31 billion and foreign exchange reserves to $ 23.2 billion, while Pakistan recorded the highest level of exports.

Imran Khan reiterated that Pakistan still had the lowest oil prices as compared to other countries.

Despite recommendation of the Oil and Gas Regulatory Authority (OGRA), he was not raising the price of petrol, he asserted.

“My government is only thinking about providing relief to the people,” he said, adding the Bloomberg magazine and International Monetary Fund had stated that Pakistan was on the right economic path.

China, Russia agreements

Highlighting his China and Russia visits, Imran Khan said Pakistan would import around 2 million tons wheat, and gas from Russia. Moreover, the outcomes of the agreements with China regarding the second phase of CPEC (China Pakistan Economic Corridor) would come to fore soon, he added.

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PECA controversy

Regarding the criticism over the Prevention of Electronic Crime Act (PECA) Ordinance, the prime minister explained that it was promulgated in 2016 and the incumbent government was just amending it to do away with the filth on social media, women harassment and child pornography.

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“We are just amending it. The leader, who doesn’t violate laws, will never be afraid of free media,” he said and added that currently, almost 70 percent of total news coverage was against the government.

He said around 94,000 cases related to women harassment, fake news and pictures were pending with the FIA (Federal Investigation Agency) and of those, only 38 had been disposed so far.

• Pakistan