IMF Agrees to PM Fuel Subsidy for Existing Consumers Only, Rules Out Adding More Beneficiaries

Islamabad (Qudrat Daily): The IMF has agreed to allow the Prime Minister’s fuel subsidy for existing consumers only, but has demanded that no further consumers be added to the petrol subsidy.

According to details, negotiations between Pakistan and the IMF are ongoing. Sources say the IMF has not yet agreed to a reduction in the levy on petrol and diesel.

Sources say the IMF is willing to allow the Prime Minister’s fuel subsidy for existing consumers, but has demanded that no additional consumers be included in the subsidy’s scope.

The IMF has taken the position that the fuel subsidy should be limited to motorcycles, three-wheelers, and vehicles up to 800cc.

Sources say the IMF mission will meet officials of the Ministry of Petroleum again today, with the Pakistani delegation led by the Minister for Petroleum.

The talks will also cover various matters including the gas tariff structure and the gas sector’s circular debt. Work has also begun on preparing the Memorandum of Economic and Financial Policies between Pakistan and the IMF.

According to sources, the IMF mission’s negotiations with officials of the Ministry of Petroleum and the Power Division are ongoing, while another meeting with Ministry of Finance officials is also expected today.

Meanwhile, the IMF is also demanding the deregulation of the sugar sector with the consent of the provinces; however, Sindh has described the federal government’s sugar policy as an interference in provincial autonomy.

Sources say that due to Sindh’s disagreement on the matter of deregulating the sugar sector, the sugar policy has not yet been finalized.