Advisor to Finance Minister, Khurram Schehzad on Tuesday said that while global fuel prices have surged sharply in recent weeks, Pakistan has adopted a measured and calibrated approach to balance fiscal sustainability with public relief.
\nFuel prices, particularly diesel and petrol, have increased significantly across both developed and emerging economies, with several countries witnessing hikes ranging between 27 to 71 percent or more, compared to Pakistan\u2019s relatively moderate increase of around 22 to 24 percent, the advisor wrote on his social media account X.
\nKhurram Sehehzad noted that many countries, especially in emerging markets, have passed on the global price shocks more aggressively to consumers, whereas Pakistan has attempted to cushion the impact through a balanced pricing strategy.
\nHighlighting the taxation structure, he said that the retail tax on petroleum products in Pakistan stands at about 25 percent \u2014 16 percent on diesel and 33 percent on petrol \u2014 which is lower than the regional average of around 35 percent.
\nHe added that Pakistan is currently maintaining zero percent sales tax on petroleum products, compared to the standard 18 percent rate.
\nKhurram Schehzad said that Pakistan\u2019s approach reflects a careful balance between maintaining fiscal discipline and minimizing the burden on the public, amid limited global space for prolonged subsidies.
\nHe observed that the broader international trend indicates a shift towards price rationalisation, as most economies are increasingly unable to sustain long-term fuel subsidies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Advisor to Finance Minister, Khurram Schehzad on Tuesday said that while global fuel prices have surged sharply in recent weeks, Pakistan has adopted a measured and calibrated approach to balance fiscal sustainability with public relief. Fuel prices, particularly diesel and petrol, have increased significantly across both developed and emerging economies, with several countries witnessing hikes […]<\/p>\n","protected":false},"author":2,"featured_media":466698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-537944","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n