Islamabad, Pakistan (CU)_ The Pakistan government has planned to increase the cost of petrol and diesel by Rs 30 per liter starting June, delivering yet another blow to the inflation-stricken populace. Finance Minister Miftah Ismail revealed the news at a press conference. Following the price hike, petrol will now cost Rs 209.86 per liter, while diesel will cost Rs 204.15 per liter.
According to Miftah Ismail, the decision was made owing to the escalating cost of petroleum products in the global market. He stated that despite the large increase, the government was still incurring losses. To relaunch the program, the International Monetary Fund (IMF) asked Pakistan to eliminate subsidies on power and petroleum goods.
According to a statement released by the IMF, a mission headed by Nathan Porter had virtual and direct discussions with Pakistani authorities from May 18 to May 25 regarding strategies to guarantee economic stability and sustained growth in Pakistan. According to the statement, the mission held productive discussions with Pakistani authorities to seek an agreement on policies and reforms in order to finalize the seventh review of the pending reform program backed by IMF Extended Fund Facility arrangements.
According to the IMF, major improvements had been achieved during the mission in areas such as high inflation and fiscal and current account deficits, and that appropriate protection was being provided to stop the precipitous slide. In this perspective, the policy rate rise implemented on May 23 was a positive development.
According to the statement, the previous review’s financial sector pledges have not been fulfilled, and in February, the government promised partial subsidies for gasoline and electricity. The IMF stated, “The team emphasized the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives”. The IMF added, “The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit of all of Pakistan’s citizens.”
