ISLAMABADL Pakistan has assured the visiting International Monetary Fund (IMF) mission that the Prime Minister’s fuel relief scheme is temporary and will be withdrawn once international oil prices decline.
During ongoing negotiations, Pakistani officials informed the IMF that targeted assistance for consumers is being provided under the Fuel Relief Scheme.
Officials also presented the IMF with a detailed breakdown of petrol prices and related costs. According to the briefing, imported petrol costs around Rs250 per litre, while consumers are paying approximately Rs390 per litre.
The presentation showed that taxes account for nearly Rs110 per litre, while different margins collectively add around Rs27 per litre to the petrol price.
Despite IMF concerns, government officials are unlikely to terminate the three-month compensation programme ahead of schedule. The scheme targets motorcycle and small-car owners affected by high fuel prices.
However, officials said extending the programme beyond its initial three-month period could prove difficult. The IMF has also expressed concern that the scheme’s actual cost could exceed the government’s estimated Rs75 billion allocation.
Pakistani officials told the IMF that the government had managed the recent petroleum crisis effectively. They also highlighted tax reform as a major priority for the current administration.
Meanwhile, the IMF delegation held detailed discussions with officials from the Ministry of Industries and Production in Islamabad. The ongoing talks are also covering Pakistan’s proposed new auto policy, with both sides discussing measures related to the country’s automobile sector and broader economic reforms.
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