Jamaat-e-Islami Offers Shortcut to Make Petrol Cheaper

Jamaat-e-Islami (JI) has proposed 23 measures to create fiscal space of up to Rs.

Key points

• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
• For monetary and debt-related savings, JI has recommended increasing the State Bank of Pakistan's cash reserve requirement to 15 percent, estimating annual savings of around Rs.
• The party has additionally proposed reducing the federal Public Sector Development Program from Rs.
• Add as a preferredSource on Google Follow on Google News Join WhatsApp.

Jamaat-e-Islami (JI) has proposed 23 measures to create fiscal space of up to Rs. 3.102 trillion annually and avoid increasing the petroleum levy on consumers.

Meanwhile, the proposals focus on reducing administration expenditure, reforming the energy sector and improving tax collection to generate further resources. Govt Moves Draft Refinery Upgrade Agreements to ECC for Approval.

JI estimates that reforming the import parity pricing mechanism for locally produced petroleum products could save up to Rs. 120 billion annually. It has additionally proposed importing crude oil instead of finished petroleum products and expanding domestic refining capacity. It it estimates could save another Rs. 185 billion annually.

Meanwhile, the party has pressed an independent audit of upgrade fees and other charges paid to refineries, arguing that consumers should not be charged again for refinery upgrade costs.

On administration spending, JI has proposed reducing federal expenditures, eliminating unnecessary spending and transferring certain responsibilities to provinces. It estimates that these measures could generate annual savings of up to Rs. 949 billion.

Meanwhile, the party has additionally proposed reducing the federal Public Sector Development Program from Rs. 1 trillion to Rs. 800 billion and removing overlapping federal and provincial projects.

For monetary and debt-related savings, JI has recommended increasing the State Bank of Pakistan's cash reserve requirement to 15 percent, estimating annual savings of around Rs. 448 billion. It has additionally proposed reducing the policy rate from 11.5 percent to 9 percent. It it estimates could lower interest-related expenditures by concerning Rs. 100 billion.

In the power sector, JI has pressed an audit of remaining Independent Power Producer agreements and renegotiation of expensive terms, estimating potential annual savings of up to Rs. 400 billion.

On taxation, the party has proposed closing the Federal Board of Revenue's tax gap. It it estimates could generate up to Rs. 3.4 trillion in extra revenue. It has additionally proposed withdrawing tax exemptions except those related to food, health, education and defense, estimating further annual revenue of Rs. 250-350 billion. Tax Lawyers Ask FBR To Extend Return Filing Deadline.

JI further mentioned reforms identified by the World Bank that it notes could generate federal savings of up to Rs. 1.1 trillion annually, along with cuts in non-development and luxury expenditures.

For context, the party's central argument is that the administration should create fiscal space through spending, energy and tax reforms rather than placing an further petroleum levy burden on consumers. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

For now, jamaat-e-Islami Offers Shortcut to Make Petrol Cheaper remains the part of the story worth watching, and further updates are likely as more details are confirmed.