The government has been paying Rs 14 billion per month as subsidy to keep the oil prices at the present level to provide solace to poor, Finance Minister Dr Salman Shah said on Friday. Talking to a private TV channel he said that global oil prices have increased to unprecedented level from $20 to $100 per barrel within a few years.
The government will have no option but to ultimately pass on the increase to the consumers as huge subsidy is increasing the budget deficit. He said that food prices in Pakistan are increasing at much cheaper rates of 10 to 11 percent as compared to global increase rate of 20 to 25 percent per annum.
Ultimately, food prices in Pakistan would come in line with world food prices as current price spiral is a global phenomenon. He said that wheat is available in the country at Rs 16 per kg while world price of wheat is Rs 30 kg.
He said that 35 percent regulatory duty has been imposed on wheat products to check their export. He said the next government is going to inherit a very healthy economy. "Economy is in very strong and solid position and it would continue to grow and prosper and if we continue current policies."
Regarding electricity shortage he said power consumption in the country has increased at mammoth ratio. Efforts were underway to enhance production to meet the shortage. He stressed need for national consensus on building new dams to increase cheap power production in the country.
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