Interim Finance Minister Dr Salman Shah has said the government is paying Rs 13 billion per month as subsidy to keep the oil prices in check.
Talking to a private TV, he said 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 consumers as huge subsidy is increasing budget deficit.
In next six months of current financial year the oil increase will have to be passed on to the consumers in small chunks, he added.
He said food prices in the country 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 will come in line with world food prices.
He said wheat is available in the country at Rs 16 per kg while world price of wheat is Rs 30 kg. A 35 percent regulatory duty has been imposed on wheat product to check its exports.
Ultimately, the prices of wheat, corn and cotton would also move towards international prices. It will give a big jump to rural economy. Strategy was being devised to provide subside to lower income group.
He blamed the extremists for affecting country's exports as country's exports could have been over $20 billion as compared to $18 billion right now.
The world is being convinced that Pakistan is a safe place to do business, he added. He said the next government is going to inherit a very healthy economy. Economy is in very strong and solid position and it continues to grow and prosper, if we continue current policies.