IMF Demands Immediate Increase in Pakistan’s Petroleum Prices

Islamabad: The International Monetary Fund (IMF) has reportedly urged Pakistan to raise petrol and diesel prices immediately in line with international rates.

According to sources, the IMF has advised that the government eliminate all subsidies on petrol and diesel, passing the price increase directly to consumers to ensure that budgetary and financial targets are not affected. The IMF also emphasized that the Petroleum Development Levy target of PKR 1,468 billion by June 30 must remain on track.

Sources indicated that during the first six months, PKR 822 billion was collected under the levy, while revenue from July to December recorded an increase of over 60%.

Additionally, discussions focused on measures to control the current account deficit, including proposals to shift schools and colleges to online classes, transition universities and government offices to smart working, set operating hours for shops and markets, and implement delivery services for groceries and restaurants.

The IMF’s recommendations will be accompanied by a comprehensive implementation plan to ensure effective execution of all proposals.

Officials reassured that petroleum reserves in the country are at satisfactory levels, and no immediate supply crisis is expected.

These negotiations come as the government and IMF work toward finalizing a plan for fiscal reforms and subsidy reductions to stabilize Pakistan’s budget and economy.