Disturbing news: During two separate sessions yesterday, the government was unable to reach a consensus on two issues: implementing a carbon price to curb carbon emissions and permitting dual nationals to hold important positions.
Disturbing news, Deputy Prime Minister Ishaq Dar chaired one meeting, while Prime Minister Shehbaz Sharif chaired the other, according to private TV Express News. For the third time in a row, the prime minister delayed the summary of permitting dual nationals to serve as governors, deputy governors, and directors of the State Bank during the federal cabinet meeting.
An inconclusive meeting on the carbon levy was convened by Ishaq Dar a few hours before to the cabinet meeting. The Express Tribune was informed by senior government sources that a temporary hike in the present petroleum levy rate of Rs60 is being suggested in order to stop the price of gasoline and diesel from dropping.
The petroleum charge may be raised by the law to Rs70 per liter. An extra Rs15 billion might be generated for the government each month with a Rs10 increase in the levy rate.
A carbon charge of Rs10 per liter, with a one-year initial rate of Rs3 per litre, has also been advocated by the IMF.
The plan is a component of the $1 billion conditionality for the IMF’s new Climate Resilience Facility, which is presently being negotiated.
According to sources, the administration is taking into account plans to raise the petroleum levy rate and implement a carbon levy at the same time.
On Monday, the prime minister presided over a meeting to discuss the petroleum and carbon price concerns, but no decision was made. He subsequently forwarded the issue to Ishaq Dar, who presided over a meeting on Tuesday. However, there was a disagreement on the allocation of the levy proceeds.