The federal government and Jamaat-e-Islami Pakistan (JI) on Thursday agreed to constitute committees to recommend measures for reducing the petroleum levy and providing relief to the public. JI Emir Hafiz Naeemur Rehman, Planning Minister Ahsan Iqbal and Prime Minister’s Adviser Rana Sanaullah announced the decision at a press conference in Lahore following a meeting between the government delegation and JI leadership. Addressing the press conference, Iqbal said a government delegation had met the JI leadership at the party’s headquarters in Mansoora on the instructions of Prime Minister Shehbaz Sharif. He said the government would constitute a committee of experts and had asked the JI to form a similar committee to jointly discuss measures for reducing the petroleum levy and providing relief to consumers. The government currently levies Rs114 per litre in taxes and duties on petrol and Rs100 per litre on high-speed diesel. Iqbal said both the government and JI wanted to provide relief to the public. He added that the government would listen to the JI’s proposals on the petroleum levy and take whatever steps were possible. “The government’s first priority is to provide relief to the people, ” he said, adding that the two expert teams would jointly formulate a roadmap for reducing the burden on consumers. Iqbal said JI had “legitimate” demands but petroleum prices would also have to be considered in the context of international prices. The government delegation included Iqbal, Sanaullah and Punjab Minister Khawaja Salman Rafiq, while JI’s negotiating team was led by Deputy Emir Liaquat Baloch. Baloch presented the party’s demands, including the abolition of the petroleum levy, termination of independent power producer (IPP) agreements and a reduction in electricity prices. Sanaullah said both the government and JI wanted to provide relief to the public. He said the increase in international prices, as well as the Iran war, had added to the burden on consumers. He said teams from the Federal Board of Revenue, Finance Ministry and Petroleum Ministry would also work on finding a solution to provide relief to the public. Sanaullah said JI leaders had told the government that they had proposals that could provide relief to consumers, adding that the government was willing to consider them. Iqbal said the policy rate had fallen from 23. 5% to 11. 5%. He also criticised the economic situation inherited by the present government, saying the country had faced a difficult period over the past four years. The minister said the government was not in the International Monetary Fund programme by choice but had to deal with the challenges facing the country. He also said the government did not want circumstances to emerge that could be exploited by forces seeking to harm the country. Iqbal said formal talks between the government and JI would begin on Monday. Hafiz Naeem said the meeting with the government delegation had been positive and thanked the government representatives for coming to Mansoora. He said JI’s sit-ins had entered their 19th day, adding that protests that initially began at three locations had now spread to 15. Naeem said the protests were not aimed at advancing a personal agenda or serving electoral interests, but were being held to seek relief for the public. He said inflation had made life increasingly difficult for ordinary citizens and claimed that more than 40% of the population was living below the poverty line, according to government data, while 95% of people were struggling to meet their basic needs. The JI chief claimed that more than Rs8 trillion had been collected through the petroleum levy, which he said was originally intended to improve refineries. He said people who did not directly pay taxes were also effectively paying a levy of around 35% on petrol. Naeem also criticised capacity payments to IPPs, saying consumers were being charged even when power plants were not generating electricity. He also questioned capacity payments for regasification plants. He demanded a reduction in petrol prices, cheaper flour and lower electricity tariffs, saying JI had identified areas where government expenditure could be reduced to bring down inflation. Naeem said the government had asked JI to postpone its sit-ins, but the party had made it clear that the protests would continue. “Negotiations will be more meaningful while the sit-ins continue, ” he said. He added that JI would present its proposals to the government to help provide relief to the public.
Govt, JI agree to discuss steps to cut petroleum levy
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