Sell-off of SOEs no viable option: Khursheed

The petroleum products' import bill has sharply plummeted from $12 billion to $5.2 billion due to a massive decrease in gasoline prices in the international market but the government is still looting the people by levying over 64.5 percent sales tax on diesel alone. Speaking on reduction of oil prices in the international market and their subsequent relief to the public, Leader of Opposition in the National Assembly Syed Khursheed Shah said the government is selling the national assets to retire the debt and this is a flawed policy.
He said the oil price was around $110 per barrel during the PPP government which has now plummeted to around $25 per barrel, but the government is not passing on the relief to the public. The opposition leader said the government also collected some Rs 145 billion last year under the gas development surcharge and is collecting the same this year too. "The government is benefiting traders and rich people only," he said.
"What is justification to loot the people when the government is saving a lot in foreign exchange reserves," he questioned, urging the government to fix an amount for General Sales Tax on per litre of petroleum. Speaking on Pakistan International Airlines' proposed privatisation, he said the national carrier's loss has reached Rs 27 billion at a time when oil prices in the international market are at their lowest.
"From 2010-12, the fuel cost of the PIA was around 56 percent and this has now dropped to 21 percent due to reduction in gasoline prices in the international market," he said. Shah said the privatisation of public organisations was not a viable option to strengthen the economy or retire the foreign loans. "Around 176 public organisations have been sold in the last 25 years and the government earned just a peanut, 649 billion rupees," he said.
The PTCL was privatised during the General Musharraf regime but a payment of $800 million is still to be recovered from the buyers, he said. He urged the government to review its policies about privatisation of the state institutions and withdraw show cause notices against 165 PIA employees who have recently partook in the strike and protests.