IMF asks Pakistan to submit petrol subsidy plan

March 29, 2023 (MLN): The International Monetary Fund (IMF) on Wednesday asked the government to submit the complete plan for petrol subsidy as the fund has rejected the initial version of the proposal for the subsidy, Federal Minister for Finance and Revenue Senator Ishaq Dar said. 

To recall, on March 20, Prime Minister Shehbaz Sharif announced a relief package for the poor which includes a subsidy of Rs50 per litre of petrol for low-income individuals who own small vehicles such as motorcycles, rickshaws, and 800cc cars. 

However, right after this announcement, Esther Perez Ruiz, the IMF's resident representative in Pakistan said that the government did not consult with the fund about the fuel pricing scheme.

She mentioned that once the remaining points, including the fuel scheme, were settled, a staff-level agreement would be signed.

The IMF seeks the government for additional information about how the fuel proposal will be implemented and what measures will be implemented to prevent misuse.

In addition to it, Former finance minister Miftah Ismail acknowledged that the IMF's concerns over the government's plan to provide a petrol subsidy to the people of Pakistan are valid.

Copyright Mettis Link News