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2026-09-05T11:43:02.000Z

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Pakistan government and Islamic community's fuel tax agreement

Pakistan government and Islamic community's fuel tax agreement

Pakistan is facing a widespread energy crisis due to rising fuel prices, as the government has increased gasoline prices by more than 60% and aviation fuel by about 20%, in addition to previous diesel price hikes. In response, the Islamic Party called for a general strike and protests against taxes on petroleum, leading to the closure of markets and shops in several parts of the country, especially in Sindh Province and Karachi, while the response was less intense in other regions. The government attributes the price hikes to tensions between Washington and Tehran, with Pakistan imposing higher taxes and fees on petroleum products as a result of economic challenges stemming from the war, which is fueling inflation and impacting consumers and the economy overall. The Islamic Party has threatened to expand the protests to Islamabad if the government does not roll back the tax increases, amid ongoing rising prices and worsening economic conditions.

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