Home Latest News Former Finance Minister Brands Decision to Not Increase PDL as ‘Reckless’

Former Finance Minister Brands Decision to Not Increase PDL as ‘Reckless’

Miftah Ismail laments decision of his successor, Ishaq Dar, but maintains the PTI’s unfunded fuel subsidy was ‘unforgivable’

by Staff Report

File photo of former finance minister Miftah Ismail

Former finance minister Miftah Ismail on Sunday described the ruling coalition’s decision to not increase the petroleum development levy (PDL) for the next two weeks as “reckless,” but rubbished the Pakistan Tehreek-e-Insaf (PTI)’s criticism of the same, maintaining its unfunded subsidy had been “unforgivable.”

On Saturday, Ismail told an event in Karachi that Adviser to the P.M. on Establishment Ahad Cheema had urged him to ask the International Monetary Fund (IMF)’s permission to freeze fuel prices for three months. “I said I would rather die than ask them that,” he said, explaining that during negotiations IMF officials had told him he would not increase fuel prices once the lender released its next tranche to Pakistan. He claimed he had asked the IMF’s managing director during a meeting in New York if the PDL could be frozen for the next three months but had not received any response. “The government unilaterally froze the PDL. May God have mercy,” he added.

Sharing this speech, former finance minister Shaukat Tarin had accused the ruling coalition of “double speak” for accusing it of violating IMF conditions while doing the same itself. “But you [Tarin] did violate the agreement you made with the IMF,” Ismail said in a posting on Twitter.

“You agreed to increase sales tax to 17% but reduced it to zero. You agreed to raise petrol levy every month by Rs. 4 to Rs. 30 but brought it to zero. You agreed to not give amnesty but gave one anyway,” he said. “You gave an unfunded, unsustainable subsidy on petrol. PTI nearly bankrupted us but when I took over and went to the IMF we saved Pakistan from default. Not increasing PDL this month without IMF approval is reckless, but what PTI did with our economy was unforgivable,” he added.

Last week, Ishaq Dar, who replaced Ismail as finance minister, announced a decrease in fuel prices by freezing the existing PDL and passing on a decline in global fuel prices to the consumer. In a press conference, he said the decision had been taken after consultation with Prime Minister Shehbaz Sharif, adding that a month-long extension had also been granted for the filing of tax returns.

At the time, questions had been raised on not raising the PDL, as committed to with the IMF, but sources within the government had claimed the IMF had been approached on the issue. Ismail’s remarks clarify that while the proposal was shared with the global lender, it had yet to formally approve or deny the decision before the government announced it.

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