ISLAMABAD, July 1: Prime Minister’s Adviser on Finance Dr Salman Shah has said that there will be no serious effect on the country’s economy due to increasing international oil prices, but admitted that the cost of export products will rise to some extent.

He was addressing a joint news conference on Friday to officially release the revenue collection figures for the 2004-05 financial year with the State Minister for Finance Omar Ayub Khan and Central Board of Revenue Chairman M. Abdullah Yousuf.

“It is a difficult area to predict that the oil prices will decline in the international market or not,” he said, adding that there was one assumption that oil prices might touch $100 per barrel, Mr Shah said.

He said that the persistent raise in the oil price would not have grave effects on the industrial production in Pakistan, but might have an impact on production of other countries mostly dependent on oil imports.

He said that the impact of increase in oil prices would be bridged through increase in the flow of remittances, better price on exportable products and increase in the foreign direct investment in the country.

Replying to a question, the adviser said that it was not possible for the government to rationalize the taxation on import and local supply of oils.