Shahid Khaqan urges govt to deregulate fuel prices, promote electric vehicles

ISLAMABAD: Awaam Pakistan President Shahid Khaqan Abbasi on Saturday called on the government to deregulate petroleum prices and promote electric vehicles (EVs) to absorb the economic impact of rising oil prices amid the US-Israel war on Iran.

Addressing a press conference in Islamabad, Abbasi said: “I would like to say two things: deregulate the petroleum prices — the government is not capable of handling it — and pay attention to electric vehicles (EVs), especially on motorcycles.”

“This amount keeps on increasing […] your system will function only if you incentivise EVs,” he added, citing China as an example of having policies to promote EVs.

The former prime minister also raised questions about some provinces’ decisions to make public transport free and distribute funds among certain groups.

He contended that “not even Rs20 billion out of the Rs200bn announced would reach” the public due to the high levels of corruption prevalent in government departments.

The Awaam Pakistan chief claimed the government adopted “five different policies” over the past month to determine oil prices, adding that it was better to deregulate the prices and leave them dependent on the market.

“This is the path Pakistan should take. There is no other way,” he said, recalling that the government had decided in 2018 that petroleum products in Pakistan would be deregulated.

“You are the government. You can counter hoarding; it is your responsibility. It does not mean hiking the prices in an untimely manner,” the former premier said.

He emphasised that there was a need to “express these faults and understand the issues facing the country today”, adding that it was the government’s job to formulate policies while keeping in mind the lasting impacts of the ongoing war.

Abbasi further pointed out that Pakistan had witnessed a “solar revolution” without the government’s interference.

“We always try to find whose fault it is,” Abbasi remarked, recalling that first, independent power producers (IPPs) were blamed for the electricity crisis, then the policy of net-metering was identified as the issue.

“The government changed the policy four times; they ended net-metering, then it was reintroduced. Why can’t you formulate a permanent policy? This is called elite capture,” he said. Staff Report