ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to promptly reflect any rise in global petroleum prices in domestic fuel rates and avoid providing subsidies on petrol and diesel, according to official sources.
The issue came up during a virtual meeting between Pakistani officials and an IMF delegation on Friday, where the lender stressed the importance of maintaining fiscal discipline and protecting revenue targets linked to petroleum products.
Sources said the IMF specifically urged the government to safeguard its petroleum development levy (PDL) goal of Rs1.468 trillion by the end of the current fiscal year on June 30. Between July and December, the government has already collected around Rs822 billion through the levy, surpassing 60% of the annual target.
Discussions also focused on possible measures to reduce energy consumption and manage Pakistan’s current account deficit. One proposal suggests shifting schools and colleges to online learning in the initial phase, followed by smart working arrangements for universities and government offices.
Additional recommendations include regulating opening and closing hours for shops and markets, as well as encouraging restaurants and grocery stores to rely more on delivery services to cut energy use. A detailed implementation plan based on these ideas is expected to be submitted to the government.
Meanwhile, the government is also considering a work-from-home policy as part of a national fuel conservation strategy amid concerns over potential disruptions to oil supplies in the Middle East following tensions involving the United States, Israel, and Iran.
The conflict has raised fears about shipping through the Strait of Hormuz, a key global energy route through which nearly one-fifth of the world’s seaborne crude oil and large quantities of liquefied natural gas pass.
Officials said the government has started preparing a broader national action plan to conserve energy, which may include remote working and other measures similar to those adopted during the COVID-19 pandemic.
