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Pakistan didn’t consult IMF before announcing petrol subsidy: Report

MM News Staff by MM News Staff
March 21, 2023

KARACHI: The International Monetary Fund (IMF) has made it clear that Pakistan authorities did not consult its staff ahead of announcing their recent fuel subsidy proposal.

Also read: PM Shehbaz announces Rs.50 per liter subsidy on petrol for low income people

The lender’s resident representative while responding to a media query said “the IMF is seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities.”

Also read: Government once again increases petroleum prices

The IMF response came two days after Prime Minister Shehbaz Sharif announced on Sunday that the low-income segment of the country would be given a fuel subsidy of Rs50 per litre as part of a new relief package.

However, his cabinet minister Dr Musadik Malik said on Monday that on the directives of Prime Min­ister Shehbaz Sharif, subsidy in petrol prices, under the petrol relief scheme, had been en­hanced to Rs 100 from Rs 50 for the poor on every litre of petrol.

Musadik Malik elaborated that under the re­lief scheme, low income peo­ple, who have motorcycles, 800cc cars or other small ve­hicles would be given relief to cope with high fuel pric­es.

IMF representative Esther Perez Ruiz said on Tuesday that “as a general matter, the IMF sees strengthening support for those eligible for social assistance through the unconditional Kafalat cash transfer scheme as the most direct way to help the neediest in Pakistan.”

Commenting on the staff-level agreement, Ruiz said substantial progress has been made in discussions towards policies to underpin the ninth EFF review in recent days.

“At this point, ensuring there is sufficient financing to support the authorities in the implementation of their policy agenda is the paramount priority. A staff level agreement will follow once the few remaining points are closed,” said Esther Perez Ruiz.

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