The Government of Prime Minister Shehbaz Sharif remains undecided in two critical policies matters: if allowing dual nationals to occupy key positions in the State Bank of Pakistan (SBP) and if imposing a carbon tax to stop emissions.
The Government on Tuesday once again postponed decisions on both issues in two consecutive consecutive meetings, a chaired by the Prime Minister and the other by the Vice Prime Minister Ishaq Dar.
During the cabinet meeting, Prime Minister Shehbaz, for the third consecutive time, postponed a decision to allow dual citizens to occupy the positions of governor, governors and attachments of the SBP.
Early in the day, deputy PM presided over another non -conclusive meeting on the carbon tax.
However, key government officials told The Express PAkGazette that there is a strong impulse within the government to increase the existing oil collection rate of RS60 per liter to compensate part of the next reduction in diesel and gasoline prices.
According to current law, high -speed diesel and gasoline oil can be raised to RS70 per liter. An RS10 increase would generate additional RS15 billion per month for the government, which is fighting with huge revenue deficit.
The International Monetary Fund (IMF) has also proposed to introduce a RS10 carbon tax per liter for three years, starting with RS3 per liter in the first year. This tax is part of the IMF conditions for the new climate resilience of $ 1 billion, which Pakistan is currently negotiating.
According to the sources, the government is considering both carbon thickness and an increase in oil gravamen simultaneously.
On Monday, the prime minister presided over a meeting on the matter, but did not make any decision. He subsequently sent the issue to ISHAQ Dar, who led another meeting on Tuesday, where the discussions are not conclusive. The main dispute point was the use of tax revenues, fountains said.
The sources said the Ministry of Climate Change wanted the tax profits to mitigate the climate impact. However, another opinion suggests using income to compensate for the financial impact of reducing sales tax on electricity bills from 18% to 10%.
In addition, the concerns that Pakistan can, in the future, affected by the carbon border adjustment mechanism (CBAM) of the European Union, which imposes pricing measures on carbon intensive imported goods, can also be raised.
In addition, imposing a carbon carbon tax remains a challenge, since it falls under the provincial jurisdiction.
Dual nationals
Meanwhile, for the third time, Prime Minister Shehbaz Sharif blocked the proposal of the Ministry of Finance to allow dual citizens to be appointed as governors, deputy governors and members of the SBP monetary policy committee.
During the cabinet meeting, the prime minister declared that he would celebrate a separate discussion on the matter and that he would not approve it immediately.
Previously, a Cabinet Committee had unanimously recommended that dual citizens were eligible for these positions. However, the federal cabinet recently postponed the approval of the bill of the amendment of the State Bank of Pakistan 2024.
According to the sources, during the last meeting of the Cabinet, the prime minister expressed reservations on the relaxation of the legal prohibition of appointing dual nationals for key positions of SBP.
According to existing laws, dual citizens are prohibited from becoming members of Parliament, and in 2022, a restriction similar to the positions of management and formulation of SBP policies was imposed.
The Cabinet Committee had proposed to eliminate section 13-A of the SBP Law, which was later presented to the Cabinet last week.
Section 13-A affirms that no one can become governor, vice governor, director or member of the SBP if he or she “is a member of Parliament or a provincial assembly, or a local government or has dual nationality.”
This restriction in dual citizens was initially imposed in January 2022 after broad amendments to the SBP law influenced by the IMF and the preferences of the former governor.
The new amendment proposes to eliminate the term “have dual nationality” of this section, effectively lifting the restriction.
One of SBP’s former attached governors, Dr. Inayat Husain, is a national dual who completed his mandate on November 8. Given his experience and his important role within the SBP, the government was interested in retaining it for a new five -year period.
