ISLAMABAD: The federal government of Pakistan has taken a major step to provide relief to the public by preventing a possible increase in petrol and diesel prices.
Instead of raising petrol to Rs. 55 per liter and diesel to Rs. 75 per liter, the government has decided to cut Rs. 100 billion from the development budget to control the fiscal deficit.
The current fiscal year’s development budget, initially around Rs. 1 trillion, may be reduced to Rs. 900 billion.
Ongoing development projects could face up to a 10% funding cut to ease the burden on petroleum products.
The Rs. 100 billion saved from these cuts will be redirected toward emergency relief and public welfare programs.
This move is expected to not only prevent a rise in fuel prices but also help keep the country’s financial deficit under control.
Officials noted that while the government had considered increasing petrol and diesel prices, prioritizing budget adjustments is now seen as a more effective way to relieve the public.
