Government cites past agreements as NA debates fuel costs

ISLAMABAD:

Tuesday’s National Assembly session saw a second straight day of heated debate over rising oil prices amid the Gulf war, with Treasury and opposition members trading sharp criticism over economic policies and governance.

The session, chaired by Speaker Sardar Ayaz Sadiq, began with prayers for the martyrs of terrorist incidents in Bannu and other areas as well as the MP’s father Ejaz Jakhrani. Lawmakers then held in-depth discussions on energy, the economy, foreign affairs and the homeland security situation.

PPP MP Naveed Qamar drew attention to the changes in net metering policy and imposition of taxes on solar panels. He questioned why green energy was discouraged at a time when electricity remained expensive and largely dependent on polluting fuels.

Responding to these concerns, Defense Minister Khawaja Asif said the government was maintaining a “delicate balance” in the energy sector.

He said long-standing agreements had tied the government’s hands, making it difficult to exit obligations such as capacity payments. He added that the government remained bound by commitments made over the past 35 years, although efforts were underway to find some flexibility through recent negotiations.

Minister of State for Energy Shaza Fatima Khawaja told the House that Pakistan was moving towards clean energy. She said dependence on imported coal was declining in favor of local coal, while the net metering policy continued to benefit consumers and solar energy would continue to be encouraged.

During the debate on oil prices, PPP’s Sharmila Faruqui criticized the government’s policy as unclear, saying repeated price hikes were seriously affecting the public. She pointed out that heavy taxes on gasoline and rising diesel prices were fueling inflation.

MP Noor Alam Khan also criticized the increase, saying it placed an unbearable burden on citizens and made it difficult for farmers to afford to harvest wheat. He also took a strong stance on relations with Afghanistan and the current security situation.

Engineer Hameed Hussain spoke about the problems faced by the victims of the Tirah operation, prompting the President to seek a report from the relevant authorities.

Opposition MP Junaid Akbar Khan questioned why new oil rates were being applied when stocks purchased at older rates were still available. He also criticized the lifestyle of the ruling elite, alleging misuse of public funds, including allegations of luxury spending, and saying ordinary voters were being ignored in favor of those who controlled election results.

MP Aliya Kamran highlighted a revenue shortfall of Rs430 billion in the previous fiscal year, saying increases in oil prices were being used to fill the gap.

Responding on behalf of the government, Minister of State Bilal Azhar Kayani said maintaining the primary balance was a key objective. He said the tax on petroleum has been reduced up to Rs80, while the tax on diesel has been reduced to zero.

He added that digital invoicing had been introduced in sectors such as cement, tobacco and sugar and efforts were underway to widen the tax net. Despite the economic challenges, he said, the government has tried to reduce the burden on the people as much as possible.

MP Atif Khan said the opposition had not been given enough opportunity to speak out and urged leaders to adopt austerity measures, suggesting that senior officials should use commercial flights until fuel prices were reduced.

PPP MP Mirza Ikhtiar Baig also criticized the government, saying sudden hikes in oil prices had benefited businesses while heavy taxation had led to inflation. He argued that while adjustments based on world prices were understandable, imposing an undue burden on the public was not justified.

National government

Opposition leader Mahmood Khan Achakzai called for reducing political tensions and building national consensus. He called for an end to frequent parliamentary recess and stressed the need to allow all members to speak to strengthen democratic processes.

He said the current system had indeed collapsed and all political leaders must come together to form a national government. He also warned that any attempt at politics “without the PTI founder” would be met with resistance.

Highlighting regional challenges, he stressed the importance of improving relations with neighboring countries, including Afghanistan, and called for a balanced relationship between political and military leaders. He said only collective wisdom could pull the country out of the crisis.

Planes for Punjab CM

Opposition members have questioned the purchase of an aircraft worth Rs 11 billion for the Punjab chief minister, terming it unjustifiable in the current economic situation.

MP Zain Qureshi pointed out that the Khyber Pakhtunkhwa chief minister did not have an official plane and argued that such spending in other provinces was adding to public hardship. He demanded that the government reduce spending and obtain public aid during negotiations with the IMF.

In response, Khawaja Asif said it was inappropriate to target a single individual, pointing out that the chief ministers of the four provinces had access to official aircraft. He clarified that the Prime Minister had not purchased a new aircraft but had upgraded an existing aircraft.

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