Is the Government Going to End the Petrol Subsidy Scheme? Big News for the Public

Islamabad (Qudrat Daily) – The IMF has demanded the phased elimination of the petrol subsidy scheme, stating that the petrol subsidy scheme should not be expanded further.

According to details, the International Monetary Fund (IMF) has issued a statement regarding Pakistan, in which, along with the approval of important tranches under Pakistan’s ongoing Extended Fund Facility (EFF) and the climate change program, strict demands were made regarding economic reforms and petroleum subsidies.

The statement said that Pakistan will receive one billion dollars under the fifth tranche of the current loan program EFF, while 210 million dollars will be received under the fourth tranche of the RSF program established to deal with the effects of climate change.

The IMF, while demanding the phased elimination of Prime Minister Shehbaz Sharif’s petrol subsidy scheme, said that the petrol subsidy scheme should not be expanded further.

The IMF further said that the petrol subsidy scheme should be limited only to the deserving.

The IMF has urged Pakistan to continue implementing reforms in the energy sector, improve the collection of dues, and take measures to reduce production costs.

The statement also emphasized improving collections in the gas sector and reducing losses.

The IMF, while describing Pakistan’s spending on the education and health sectors as below targets, said that in fiscal year 2025, only 2.2 percent of the economy was spent on public health and education, while in fiscal year 2026, 2.5 percent was spent.

According to the IMF, Pakistan should spend 2.8 percent of the economy on public health and education in the current fiscal year 2027.

It may be noted that Prime Minister Shehbaz Sharif had announced a three-month fuel relief scheme, under which motorcycle riders were given relief of 100 rupees per liter on 20 liters of petrol per month, and owners of vehicles up to 800cc were given relief on 30 liters. The government had allocated 75 billion rupees for this scheme.