The International Monetary Fund (IMF) has urged Pakistan to channel fuel relief toward vulnerable households through the Benazir Income Support Programme (BISP) as talks on the latest programme review continue.
IMF mission chief Iva Petrova raised the issue during a kick-off meeting with Pakistani officials on Tuesday. The discussions are part of the fourth review of the $7 billion Extended Fund Facility and the third review of the Resilience and Sustainability Facility.
IMF Seeks Targeted Fuel Support
The government introduced a fuel relief scheme after international oil prices increased amid regional tensions. The programme is designed to provide financial support to lower-income consumers.
According to government details, the scheme uses a digital Fuel Pass system. Two- and three-wheelers are eligible for Rs500 weekly relief, while cars up to 800cc can receive Rs1,000 for ten days.
The IMF has previously supported targeted social protection while opposing broad fuel and energy subsidies. Its existing programme framework calls for protecting vulnerable households through targeted mechanisms, including BISP.
Education and Health Spending Questioned
Petrova also raised concerns about Pakistan repeatedly missing quarterly and annual spending targets for education and health.
According to officials cited in the report, spending last fiscal year remained about Rs370 billion below the nearly Rs3.5 trillion target. The IMF mission also sought clarification over an Rs853 billion statistical discrepancy between federal and provincial accounts.
Circular Debt and SOE Reforms
The IMF also raised concerns about slow progress in reducing gas and power-sector circular debt. Officials said gas-sector circular debt had reached about Rs3.6 trillion by March.
The mission further called for faster reforms of state-owned enterprises, including changes to the legal framework governing SOEs.
The current IMF review could determine whether Pakistan receives about $1.2 billion under the two programmes after successful completion of the reviews.
