Joint JI-govt committee to mull ways to expand fuel relief scheme

AI Summary

Pakistan's government and Jamaat-i-Islami have formed a joint committee to propose expanding a fuel subsidy scheme and reducing the petroleum levy in phases. JI says it may march to Islamabad next month if the government does not announce further relief, as rising fuel prices strain the public.

The government and Jamaat-i-Islami (JI) on Tuesday decided to form a joint committee to recommend proposals for expanding the ongoing fuel relief scheme, while JI warned of marching to Islamabad next month if no relief “package” was announced by then. The decision was made during a high-level meeting between Prime Minister Shehbaz Sharif and JI chief Hafiz Naeemur Rehman at the PM House, according to a press release issued by the PM Office (PMO). The meeting was offered by PM Shehbaz last month when urging JI to postpone its Islamabad march, which it had accepted. JI has been demanding the abolition of the petroleum levy to reduce the burden of heightened fuel prices on the public. Tuesday’s meeting decided that a committee, comprising three members each from the government and JI, will present final recommendations on the following two measures: Expansion of the scope of the ongoing relief scheme on petrol for the public so that the maximum number of deserving people can benefit from it Preparation of feasible proposals for the budget for a phased reduction in the petroleum levy Deputy Prime Minister and Foreign Minister Ishaq Dar, Planning Minister Ahsan Iqbal and the PM’s political adviser Rana Sanaullah will represent the government in the joint committee, PMO stated. The premier informed the JI delegation in detail about the relief provided so far by the government in the petroleum products quota for the low-income segment, noting that 12.7 million people have registered in the subsidy scheme so far. The relief scheme for owners of motorcycles, rickshaws and vehicles of up to 800cc was rolled out across the country on Sept 17. PM Shehbaz had announced the subsidies to ease the public’s burden amid rising fuel prices due to the Middle East situation. During the meeting, the prime minister conveyed to JI that he “fully understands the burden on the public due to the increase in prices of petroleum products”, PMO said. He highlighted the government’s effort to provide relief through the subsidy scheme and asserted that Islamabad was “making all-out diplomatic efforts to resolve the regional crisis so that the situation can return to normal”. “The current crisis is not related to government policies but to the increase in oil prices in view of regional and international situations. However, according to financial capacity, the government is providing relief to the public and will continue to do so,” he was quoted as saying. The prime minister thanked JI for adopting the path of negotiations regarding the prices of petroleum products. PMO noted that the JI delegation “expressed its stance on the abolition of the petroleum levy and relief for the public”. JI Deputy Emir Liaquat Baloch, Deputy Secretary General Syed Farasat Shah, Islamabad Emir Nasrullah Randhawa and Inayatullah were also part of the party delegation. From the government, Dar, Iqbal, Sanaullah, Economic Affairs Minister Ahad Khan Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, and Minister of State for Finance and Railways Bilal Azhar Kiani were also present. ‘Cannot simply accept peanuts’ In his press conference in Islamabad, the JI chief affirmed that his party will not postpone its march any further. He stated: “It will now take place in mid-November, and it certainly will take place. Let them announce this package, provide this relief, and devise a mechanism to abolish this extortionate levy before that, [but] if they do not do so, we might have to sit on the road to talk. “We are prepared for anything,” Rehman declared. Asked about the outcome of his meeting with PM Shehbaz, the JI emir refrained from terming it “inconclusive”. He noted that two sides had consensus on expanding the scope of relief, but there were disagreements over the “modalities” and “procedure”. “We say eliminate the levy; they say we can move towards it phase by phase,” Rehman elaborated. Rehman, apparently referring to the new joint committee, said Baloch, Shah and Randhawa would be part of it. “We cannot simply accept peanuts,” the JI chief said when asked about a reported government offer to reduce the levies by Rs20-30. He stressed that his party stood firm on its stance. He maintained that JI would continue its preparations and would begin nationwide mobilisation for its planned march to the federal capital, while negotiations would also continue at the same time. “Our preparations are already complete; we will prepare further [and] we will talk to them (the government) further. However, we will also hold the Islamabad march in mid-November,” Rehman said. Asked whether JI had presented any alternative to abolishing the levy, he responded in the affirmative, asserting that his party had comprehensive preparations. Rehman highlighted that all past governments vowed not to take loans from the International Monetary Fund (IMF) but then entered into programmes with