Former Finance Minister Miftah Ismail revealed that Pakistanis paying for fuel are effectively contributing around Rs 80 per liter in taxes. He said these high costs add to the country’s economic challenges.
According to Ismail, the previous PTI government had introduced subsidies on petrol and diesel. Diesel received a subsidy of Rs 70 per liter, while petrol had Rs 40 per liter. These measures, he said, caused the government to face a monthly loss of Rs 110 billion.
“Pakistanis paying high fuel taxes are indirectly bearing the cost of years of economic mismanagement,” Ismail added. He emphasized that subsidies, while initially aimed at easing the burden on citizens, created significant pressure on the national economy.
Ismail stressed that restoring the IMF program was essential to avoid financial collapse. The cabinet had approved measures to end fuel subsidies, but some senior PML-N leaders obstructed implementation, delaying critical reforms. “We tried to implement IMF conditions to save the country, but interference delayed progress,” he said.
The former minister also criticized the PDM government for pushing Pakistan toward another economic crisis in 2023. That year saw record-high inflation and a steep fall in the rupee, which had reached Rs 290 per dollar by June. The government eventually had to seek an IMF agreement to prevent bankruptcy.
He urged the current government to take responsibility for the ongoing economic situation, saying that while PTI faced criticism, the foundations of the crisis were laid over multiple administrations.
Ismail’s remarks highlight how Pakistanis paying high fuel taxes continue to be affected by policy decisions from successive governments. Petrol currently costs Rs 253.17 per liter, while diesel is priced at Rs 257.08 per liter.
Experts say addressing fuel taxation and subsidy policies is critical to stabilizing Pakistan’s economy and protecting citizens from excessive financial burdens.
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