Prime Minister Shehbaz Sharif’s government remains indefinitely in two critical political affairs – whether they will allow double citizens to have key positions in the State Bank of Pakistan (SBP) and whether to impose a carbon tax to limit emissions.

On Tuesday, the government postponed decisions on both issues in two separate back-to-back meetings one chairman of the Prime Minister and the other of Deputy Prime Minister Ishaq Dar.

During the cabinet meeting, Prime Minister Shehbaz exposed a decision for the third time a decision to give double citizens the opportunity to hold the position of governor, deputies governors and directors at SBP.

Earlier in the day, Dar Dar Dar Dar Dar Dar Dar Dar Dar for another inconsistent meeting on the carbon tax.

However, the most important government officials told Express Pakinomist that there is a strong push in the government to increase the existing petroleum tax rate of RS60 per year. Liter to equalize part of the upcoming reduction in diesel and gasoline prices.

According to the current law, the petroleum tax on high -speed diesel and gasoline can be raised to RS70 per year. Liter. An increase of RS10 per Liters would generate a further RS15 billion per liter. Month for the government struggling with huge income deficits.

The International Monetary Fund (IMF) has also proposed to introduce a carbon tax of RS10 per year. Liters over three years, starting with RS3 per Liter in the first year. This tax is part of the IMF’s conditions for the new $ 1 billion climate production facility currently negotiating.

According to sources, the government is considering both the carbon tax and an increase in the petroleum tax at the same time.

On Monday, the Prime Minister was chairman of a meeting on the matter, but made no decision. Then he referred the question to Ishaq Dar, who led another meeting on Tuesday, where discussions remained inconsistent. The primary point of contention was the exploitation of the charge, the sources say.

The sources said the Ministry of Climate Change wanted the collection of the collection to mitigate the climate impact. However, another view suggests using the proceeds to offset the financial effect of reducing the VAT tax on electricity bills from 18% to 10%.

In addition, there has also been concern that Pakistan may in the future be affected by the European Union’s carbon boundary adjustment mechanism (CBAM), which imposes pricing measures on carbon -intensive imported goods.

In addition, the introduction of a carbon tax on coal remains a challenge as it falls under provincial jurisdiction.

Dual Nationals

Meanwhile, for the third time, Prime Minister Shehbaz Sharif Finance Ministry’s proposal to allow double citizens being appointed governors, deputy generators and members of the monetary policy committee for SBP.

During the cabinet meeting, the prime minister declared that he would hold a separate discussion about the matter and would not approve it immediately.

Previously, a cabinet selection had unanimously recommended to make double citizens entitled to these positions. However, the Federal Cabinet recently postponed approval by the State Bank of Pakistan amendment proposal 2024.

According to sources, the prime minister expressed reservations during the last cabinet meeting to relax the legal ban on appointing double citizens as key SBP positions.

According to existing laws, double citizens are prevented from becoming MPs, and by 2022 a similar restriction of SBP’s leadership and political positions was introduced.

The cabinet committee had proposed to delete section 13-A in the SBP Act, which was then presented before the cabinet last week.

Section 13-A says no one can become governor, Deputy Governor, Director or Member of SBP if he or she is a member of parliament or a provincial assembly or a local government or has a double nationality. “

This restriction of double citizens was initially introduced in January 2022 following broad amendments to the SBP Act affected by the IMF and the preferences of the former governor.

The new change suggests removing the phrase “having double nationality” from this section, which effectively lifts the restriction.

One of SBP’s former vice generators, Dr. Inayat Husain, is a double national that ended its period on November 8th. Given his experience and significant role in SBP, the government was interested in retaining him for a new five -year period.