| GEO Business|
| Cut in petroleum price not possible due to fall in revenue|
| Updated at: 0927 PST, Wednesday, February 25, 2009|
ISLAMABAD: National Assembly Standing Committee for Finance was told that any further cut in petroleum price was not possible due to fall in recovery of revenue, while the Advisor Finance, Shaukat Tarin said that $1 billion was expected to be received from US during current fiscal year.
Standing Committee meeting was held with Fauzia Wahab in chair, which mulled over doing away with the government subsidy on food items and matters relating to price hikes.
Finance Advisor told the Committee that growers were not getting due price of their rice crops due to corrupt elements in Pasco, while for ensuring wheat procurement at the purchase price of Rs950, if required, wheat would be purchased even more than the set target. He said that the government receives Rs12 billion annually on account of development levy on petroleum import. He said that revenue recovery fell short of the target by Rs20 billion in January 2009.
Following the meeting, Shaukat Tarin told media that State Bank and we hope GDP rate remaining at 3.4 or 3.5 percent and it would not be 2.5 percent. He said that the bank interest rate could be reduced in a month or two.