LAHORE, March 1: The caretaker administration has begun consulting the Pakistan People’s Party (PPP) before taking decisions on important policy issues.

Caretaker Finance Minister Dr Salman Shah told reporters here on Saturday that the government had taken the majority party into confidence before increasing the oil prices and power tariff.

The PPP, which according to its leadership is acting as the government-in-waiting, had urged the caretakers to raise the prices because it would be difficult for the new government to take such unpopular decisions immediately after coming to power.

Dr Shah said the next government would have to make a few more domestic oil price adjustments and reduce unproductive and development expenditure in the remaining four months of the current financial year to contain fiscal deficit.

“The current hike in the oil and power prices will not be enough to wipe out the subsidy that the government is bearing on local sale of petroleum products. The next government will have to make two or three adjustments in 12 to 18 months to eliminate the subsidy,” he said.

Dr Shah said the government was introducing incremental electricity billing meters that would charge higher tariff during peak use hours.

Dr Shah said the increase would have an additional 1.5 per cent impact on inflation.

Our Staff Reporter in Islamabad adds: PPP spokesman Farhatullah Babar denied the claim of the minister. He told Dawn that the increase would have a negative impact on the economy and daily life of people.