Pakistan Seeks IMF Flexibility to Shield Public from Rising Fuel Prices
Islamabad:Prime Minister Shehbaz Sharif has directed the Finance Division to engage with the International Monetary Fund (IMF) on restructuring the petroleum levy on petrol and diesel, aiming to protect consumers from the impact of rising global oil prices driven by the Iran conflict.
According to official sources, the Prime Minister instructed the Ministry of Finance to raise the issue with the IMF so that any potential increase in petroleum prices can be offset through adjustments in the existing levy structure. Currently, the government is charging Rs100 per litre on petrol and Rs55 per litre on diesel as petroleum levy, which is part of IMF program conditions.
The move comes as the government has already spent Rs129 billion in subsidies to stabilize fuel prices and provide relief to the public. Officials stated that this relief was managed through cuts in the development budget and savings from other expenditures, reflecting the government’s commitment to shield citizens from the full impact of global oil market volatility.
A senior government official, speaking on condition of anonymity, said that the ongoing Iran conflict has significantly pushed up international oil prices, increasing pressure on domestic fuel rates. “The Prime Minister’s direction is clear: every possible step must be taken to prevent this shock from translating into higher fuel prices for the public,” the official added.
Sources further revealed that the Finance Division has been tasked with preparing a detailed proposal for discussions with the IMF, exploring options to restructure the petroleum levy in a way that minimizes the burden of rising global oil prices on Pakistani consumers.
