00:00 So, like Hasan was saying, because this is a very technical issue,
00:03 our representative Shoaib Nizami is with us,
00:06 so we would like to know a little bit about this Petroleum Levy Jinn.
00:11 Where did it come from? Who tried to put it in the box?
00:16 Who then removed it?
00:18 In the last 4-5 years, where was Nizami's PTI fault?
00:22 Then where was Mr. Dar's fault?
00:25 Because most people have the consensus that Mr. Dar is at fault.
00:30 So kindly explain to us a little bit,
00:32 what mistake was made, especially in the case of Petroleum Prices?
00:37 Yes, the biggest impact on Petroleum Prices in Pakistan is the Levy.
00:42 In the time of Imran Khan, the Levy was approximately Rs. 30.
00:46 When he was leaving, and in February he gave a relief package,
00:52 there was a decision in which the IMF, the program we took from them,
00:56 was opposed, and after that the IMF became very cautious.
01:00 And the line of action that we were given became very strict,
01:04 and we had to increase the Levy from Rs. 30 to Rs. 50.
01:07 This was during the August 2022 budget.
01:12 At that time, the Minister of Treasury was Mr. Ismail,
01:15 and all the big economic challenges, which included the defaults,
01:19 were controlled to some extent by Mr. Ismail.
01:22 And in some plans of action, the Levy was expensive,
01:26 and the gas was expensive, and all the big challenges were controlled
01:32 to some extent by Mr. Ismail, and the defaults were also limited to some extent.
01:37 But after that, when Mr. Dar came and said that we should leave the IMF in Plan B,
01:42 because of that, there was a mistake again, and we saw very difficult decisions,
01:46 and the IMF almost got us out of the nose,
01:50 and the Levy was increased from Rs. 30 to Rs. 50,
01:54 and we had to increase it to Rs. 60.
01:56 In the two years, that is, the fiscal year that ended on June 30,
02:01 we had to deposit Rs. 855 billion from the Levy,
02:04 and this year we will deposit approximately Rs. 870 billion from the Levy.
02:07 This is the biggest tax, which is the Levy, and it is not a part of the NFC,
02:12 it is only with the WIFAG. Because of this, we are seeing that the price of petrol in Pakistan is...
02:17 So how much will be deposited now? Rs. 1.6 billion? Rs. 1.6 billion?
02:21 Yes, in these two years, approximately Rs. 1.6 billion extra will be deposited in the Levy.
02:27 That is why we are seeing that the exchange rate of dollars is also having an impact,
02:32 and some other government that has gone, it has done it, and there was a delay in the market.
02:37 So this is done, whatever Mr. Dard wanted to do, he did.
02:40 Now, does the Nigrah government have any option, any space,
02:44 in which some people can make a decision for improvement, can they be given any relief?
02:50 I think that the coming government, the Minister of Treasury, will have to face a lot of difficulties.
02:57 This will be a seat of fire, the reason for this is that 45% of the gas rate has to increase,
03:02 which we have decided from the IMF.
03:04 Along with that, the refunds of taxes have been huge, we have to return them.
03:09 The data we give from the PBI, if you see, the electricity rate,
03:14 the PBI is quoting, is only Rs. 7.50, whereas the electricity rate is around Rs. 57.
03:20 So as soon as the Minister of Treasury comes and takes a look at the figures,
03:24 the figures of inflation will increase instead of decreasing.
03:28 Hassan, I am talking, tell me, first of all, with regard to the PBL, I will say that I remember,
03:35 when the rules were against it, Chaudhary Nisar Ali Khan Sahib,
03:38 he used to call PBL as Jagatax.
03:41 It is being taken out of the pocket of the people for no reason,
03:43 but after that, after the era of the People's Party, the Muslim League, the government of Noon came,
03:47 so this PBL was in force at that time, then PTI came, so in that too, they kept taking PBL,
03:52 then the government of Noon came, then the government of PDM came,
03:54 so in that too, they kept taking PBL, the money was coming out of the pockets of the people,
03:59 and the government kept imposing taxes.
04:01 My question is that, is there any discipline, IMF has said, to reduce the circular debt,
04:10 so with regard to reducing it, there is more talk of PBL,
04:14 or is there any other reason for this, that PBL taxes have increased more,
04:19 and again, this money is coming out of the pockets of the poor people,
04:24 and it is not stopping.
04:28 Actually, we have made so many promises with the IMF,
04:32 that even if we want to give a relief, it is not possible.
04:36 The Minister of Treasury, Ishaq Dar Sahib, and the Minister of Petroleum,
04:39 Musabdeg Malik Sahib, and the former Prime Minister, Sharmaj Shahid Sahib,
04:42 they had started working on a refugee scheme,
04:46 so the IMF had created a problem for them, and they had said that for the refugee scheme,
04:50 they cannot give a cross subsidy of 50 rupees,
04:53 meaning that they wanted to make petrol expensive for big cars,
04:56 and the 1 litre petrol for the motorcycle, they could give it for 50 rupees,
05:00 so that too could not be possible, and the IMF is not ready to accept that subsidy in any way.
05:04 So, even now, this is the biggest threat,
05:07 that now, like we have given them the action plan for 2 months, till March,
05:11 in that, there is some kind of delay, there will be some kind of difficulty,
05:14 so this is for the new government of Pakistan,
05:17 for that, the government has to be ready.
05:19 Absolutely right, sir, before leaving, the last question I have for you is,
05:21 that Russian love story, that oil tankers have come from Russia,
05:25 Musabdeg Malik Sahib, you must remember, 3-4 of them,
05:27 they had done a lot of press conferences,
05:29 that, "O Allah, now that oil has come from Russia, the situation will get better."
05:33 Where is that Russian oil, is it closed, is it coming?
05:37 Because I am seeing the news, that refineries, you are not refining them,
05:40 that the situation is going on like this.
05:42 Sir, we will take additional questions,
05:44 that we have heard that in winters, there will be a worst load shedding of gas,
05:48 if you can shed some light on this, if you have the knowledge.
05:52 Yes, actually, the Russian oil that was coming, when we checked it,
05:56 it had about 45-55% of Furnace Oil.
06:00 Now, in the international market, there is no market for Furnace Oil,
06:03 in fact, we are the only countries, that make electricity from Furnace Oil,
06:06 that electricity is made for about Rs. 103,
06:08 and we will make videos on Furnace Oil, and we will include all the losses.
06:12 So, when Furnace Oil is being produced,
06:15 we do not get it in the international market,
06:18 and it is very much in the Russian oil, that is why we do not get a loan.
06:21 Then we bring it to Gwadar, then we bring it to Karachi and refine it,
06:24 so we get about Rs. 12 free litres, which is the additional transportation cost.
06:28 That is why we could not get the real benefit of it,
06:32 and this Russian oil, it is not for our refinery.
06:35 Thank you very much, Mr. Nizami.
