Centre asks provinces to help shoulder fuel price burden

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ISLAMABAD: The Centre is asking provincial governments to share the additional cost of higher international prices in a bid to avoid a domestic hike in prices of essential petroleum products, sources told Dawn.

Insiders say the federal government is reaching out to the provinces, particularly Punjab and Sindh, to shoulder the fiscal burden it had been extending to the people across the country by maintaining petrol and diesel rates.

These demands have been extended to the provinces in personal interactions and telephonic contacts by the prime minister himself, as well as other cabinet members, a senior government official said.

The official hinted that the two larger provinces are expected to revert aft­er internal consultations to suggest whether they have fiscal space available, or would have to scale down their annual development plans (ADPs) to do so.

The federal government has also asked the provincial governments to participate in Centre-proposed austerity measures and energy and fuel conservation efforts — both in the public and private sectors — through increased virtual meetings, work-from-home and scattered attendance at offices and educational institutions.

While the provinces were already taking conservation measures at their own, the official said, a coordinated effort was required at the national level for minimal use of air-conditioners and car-pooling via a carrot-and-stick policy based on a proper audit mechanism through notified monitoring committees at the ministerial and provincial levels.

The official said the extent of cooperation from the provinces would determine the future course........

© Dawn Business