The International Monetary Fund (IMF) rejected Pakistan’s proposal for subsidy petrol.
According to sources, The lender has demanded the complete plan of the petroleum subsidy from the government. “The IMF has demanded a comprehensive plan of per litre 50 rupees subsidy on petroleum,” sources at the Ministry of Finance shared.
Pakistan has been in virtual contact with the IMF and the institution has insisted on the preparation of a revised plan of subsidy on petroleum, sources said.
“The government had proposed subsidy on fuel for motorcycles and small 800 CC vehicle owners,” according to sources.
The International Monetary Fund is demanding the government an effective and targeted subsidy to the poor segment of society, sources added.
Remember that International Monetary Fund (IMF) raised concerns about the petrol subsidy scheme announced by Prime Minister Shehbaz Sharif. International Monetary Fund (IMF) representative to Pakistan Esther Pérez Ruiz said that Islamabad has not consulted with the lender on the petrol subsidy scheme.
“The IMF is seeking more details about the scheme from Pakistan.” Esther Pérez Ruiz said the IMF has already rejected unfunded and untargeted subsidies.
Ruiz reiterated that the IMF views strengthening support for those eligible for social assistance through unconditional cash transfer schemes as the most direct way to assist the neediest in Pakistan.
Remember that Last week, Prime Minister (PM) Shehbaz Sharif announces that low-income poor people would be given a subsidy of Rs 50 per litre on fuel under the petroleum relief package.
While chairing a review meeting on the relief package in Islamabad, the prime minister said the petroleum relief will be given to low-income consumers who have motorcycles, rickshaws, 800 cc cars, and other small cars.
Earlier IMF demanded Pakistani government get a written guarantee from the friendly countries for the deposit. The Prime Minister’s Office and Finance Ministry officials have contacted the Saudi Arabian and UAE officials but so far no response has been received yet.
According to sources, Saudi Arabia and UAE have sought some time to assure the IMF regarding the deposit and did not respond to the request yet.
The government will inform the IMF officials when the friendly countries respond to the request. After the assurance, the IMF will hold a virtual meeting with Pakistani officials, sources added.