In a notification by the finance division of the Government of Pakistan, the price of light diesel ha sbeen reduced to ₹4.26 per litre, and the kerosene oil was reduced by Rs8.30 per litre on September 31.
However, the price of High-Speed Diesel remains unchanged.
The latest price of petroleum products in Pakistan are:
- Petrol: ₹237.43/litre
- Diesel: ₹247.43/litre
- Kerosene: ₹202.02/litre
- Light diesel oil: ₹197.28/litre
The Pakistani government said the increase in prices of petroleum products is due to the fluctuating global oil prices and exchange rate variation.
Pakistan is reeling from a severe flood situation that has submerged large parts of the country, killing nearly 1,500 people and affecting roughly 33 million people. Besides, Pakistan is on the verge of economic collapse with a lack of funds.
The political instability, deteriorating business environment, and mismanagement of the economy have pushed the country into investment fatigue from the traditional partners exposing the country to economic risks as well as political uncertainty.
The recent floods and heavy monsoons in the country have dampened the hope of a quick revival from the economic crisis.
Pakistan's agriculture sector faces the worst blow as at least 18,000 sq km of agricultural land have been wiped out. The agriculture growth might remain zero or slide into negative against the envisaged target of 3.9% for the current financial year 2022-23.
Nearly 80 districts of Pakistan have been worst hit by the floods. Thousands of people have been lodged in tents or are waiting for shelter under open skies along the main highway that leads to Hyderabad. Either side of the highway could be seen inundated by floodwater for miles.
In the wake of the increased economic losses and reduced GDP growth, the per capita income is projected to slow down. The government had envisaged a GDP growth rate of 5% for the current fiscal year.
Moreover, poverty and unemployment will go up manifold from 21.9% to over 36%. Some 37% population was hit by poverty after floods in 118 districts, as estimated by the Pakistan government.
Although the US Agency for International Development (USAID) has provided an additional USD 30 million and China promised RMB 100 million in humanitarian assistance, Pakistan needs more to keep its essential supplies and post-flood reconstruction
Recently United Nations Secretary-General Antonio Guterres, who recently visited Pakistan said that Pakistan needed "massive" financial support for relief, recovery, and rehabilitation in the wake of the catastrophic floods that displaced more than 33 million people and are estimated to have caused $30 billion of damage.
