The ruling Pakistan Muslim League (Nawaz) and the Jamaat-e-Islami (JI) on Thursday agreed to engage in technical-level talks aimed at reducing the petroleum levy and fuel prices, with both sides to form teams of experts to examine the issue and deliberate on a feasible mechanism for relief.
Leaders of both the PMLN and JI announced the decision at a press conference in Lahore. Planning Minister Ahsan Iqbal, Prime Minister’s Adviser on Political Affairs Rana Sanaullah and Punjab Minister Khawaja Salman Rafiq represented the government, while JI chief Hafiz Naeemur Rehman led his party’s delegation.
Both parties said the technical discussions would begin on Monday, with Iqbal expressing the hope that the technical teams could arrive on a workable solution within two weeks. Sanaullah said the government was ready to consider feasible proposals, maintaining both sides wanted to provide relief to the public.
Rehman said the JI would continue its ongoing sit-ins against high petroleum prices as the technical talks proceeded, adding the party’s technical team comprised Liaquat Baloch, Naveed Ali Baig, Ziauddin Ansari, Nasrullah Randhawa and Faisal Shah.
The planning minister said the government delegation had visited the JI on the instructions of Prime Minister Shehbaz Sharif. “The government will consider any feasible proposal,” he said, stressing the national interest was paramount and the government did not want unrest in the country. He noted that Pakistan was also fighting terrorism and warned that hostile elements could exploit instability.
He said Pakistan had been moving towards economic recovery but was still dependent on International Monetary Fund (IMF) programs and had limited fiscal space. He warned that abandoning the IMF program carried a cost, adding the country needed to reduce imports and increase exports.
“The government is ready to do this [provide relief],” said Sanaullah, adding officials from the Ministry of Finance, Petroleum Ministry and other relevant departments should sit with the JI team and examine their proposals. He said the essence of democracy was dialogue despite political differences and that the technical committees would now continue the negotiations.
Rehman noted Thursday marked the 19th day of the JI’s sit-ins, adding they had expanded from three locations to 15-20, with public participation increasing. He reiterated that around Rs. 131/litre of the current petrol price was in the form of various taxes, adding the government could substantially reduce the burden on consumers by reducing them. He recalled the petroleum levy was originally introduced to improve refinery and storage capacity and reduce the country’s import bill but had yet to bear fruit despite collecting over Rs. 8 trillion under its head.
He also criticized the continued collection of the petroleum levy during wartime conditions. He said the JI wanted the government to resume negotiations with Independent Power Producers to curb capacity charges and reduce electricity prices.
The JI chief stressed his party understood the country’s economic, law and order and international situation but insisted its demands were aimed at providing relief to the public rather than securing political or electoral gains. He also thanked citizens and traders for supporting the party’s protests and strike, saying demonstrations and sit-ins were continuing in several cities.
The meeting between the JI and the government occurred as the party staged a nationwide strike against fuel prices, with mixed results. While the strike call resulted in the closure of a majority of markets across Sindh, particularly Karachi, as well as Khyber-Pakhtunkhwa, it found little success in Punjab and Balochistan, where most markets remained open for normal business.