ISLAMABAD: Pakistan has assured the International Monetary Fund (IMF) that the Prime Minister’s fuel relief programme is a temporary measure and will be discontinued once international oil prices decline, sources said.
The assurance was reportedly given by Pakistani officials during ongoing discussions with the visiting IMF mission.
According to sources, the government informed the IMF that targeted financial relief was being provided to eligible consumers under the Fuel Relief Scheme.
During the briefing, Pakistani officials shared a detailed breakdown of petrol prices and related costs with the IMF delegation.
Sources said imported petrol currently costs around Rs250 per litre, while consumers are paying approximately Rs390 per litre. Taxes make up nearly Rs110 per litre, whereas different margins across the petroleum supply chain total around Rs27 per litre.
Despite the IMF’s concerns over the programme, government officials are not expected to terminate the three-month compensation scheme for motorcyclists and small-car owners ahead of schedule.
However, sources said extending the initiative beyond its initial three-month duration could prove difficult.
The IMF has reportedly raised concerns that the actual financial burden of the scheme may surpass the government’s estimated cost of Rs75 billion for three months.
Officials also told the IMF that the government had managed the recent petroleum-related crisis effectively and highlighted tax reform as a key priority of the administration.
Later, the IMF delegation held detailed discussions with officials of the Ministry of Industries and Production in Islamabad.
The talks also covered Pakistan’s proposed new automobile policy, with negotiations between the government and the IMF continuing on the matter.
