Pak PM Shehbaz Sharif slashes fuel prices after 4 rounds of massive hike

Pakistan Prime Minister Shehbaz Sharif on Thursday slashed the price of petrol by PKR 18.50 per litre and diesel by PKR 40.54 per litre respectively, a move that comes after 4 rounds of massive hike

Pakistan Prime Minister Shehbaz Sharif on Thursday slashed the price of petrol by PKR 18.50 per litre and diesel by PKR 40.54 per litre respectively, a move that comes after four rounds of massive hikes by the current dispensation since it came to power three months ago.

In his address to the nation, Sharif said the price cut, the first such step by his government was made possible after the price of crude fell below USD 100 per barrel.

The new price of petrol will be PKR 230.24 per litre, while diesel will be available at PKR 236 per litre.

The new rates will come into effect from midnight today, he said.

"Today with God's blessing, oil prices are declining in global markets and it is by his mercy that today we have got the chance to reduce the prices back, Sharif explained.

The reduction in fuel prices came after Sharif's regime had hiked prices on four occasions, with the last hike being implemented on July 1.

In his speech, Sharif said he had inherited a "troubled economy" from the previous Imran Khan-led government.

"The previous government trampled on the agreement it had with the IMF and laid landmines for us," he said.

Sharif said Khan, during his final few weeks in power, had slashed fuel prices even though the government's coffers were empty.

"This was done so our government would fall into difficulties, Sharif asserted.

The Prime Minister's announcement on Thursday coincides with the International Monetary Fund (IMF) confirming the revival of a stalled loan program for Pakistan.

The IMF said on Thursday that it had agreed with Pakistan to resume that suspended loan programme that would inject USD 1.17 billion into the ailing economy.

Pakistan is at a challenging economic juncture, the IMF said as it reached a preliminary Staff-Level Agreement on the combined seventh and eighth reviews for a USD 6 billion loan facility for the cash-strapped country.

The agreement paves the way for the release of the much-awaited USD 1.17 billion loan tranche that had been on hold since earlier this year, the Dawn newspaper reported.

In a tweet on Thursday, Prime Minister Sharif congratulated the Finance and Foreign Office teams led by Miftah Ismail and Bilawal Bhutto for their efforts in reviving the IMF programme.

It was a great team work. The agreement with the fund has set the stage to bring country out of economic difficulties, Sharif added.