Daily Times

Amid months-long delay in the revival of the International Monetary Fund (IMF) programme, Pakistan now aims to address the concerns raised by the lender before implementing the proposed fuel subsidy plan, Bloomberg reported Tuesday.

Minister of State for Petroleum Dr Musadik Malik admitted that the IMF had some reservations about the government’s plan to raise fuel prices for wealthier people to finance a subsidy for lower-income people – the plan that aims to help protect the poor and vulnerable.

Malik said: “We want to make sure now that if we move forward, we take care of their concerns and make sure that they completely understand what we are trying to do and why.” The government is still trying to meet IMF conditions to revive a stalled $6.5 billion bailout package, key to avoiding a default. The government has raised taxes and energy prices and allowed the currency to depreciate to meet some of them. This is not the first time petrol price subsidies have been a sticking point for the IMF, as measures by the previous Imran Khan-led government stalled the programme last year. Last month, Finance Minister Ishaq Dar said that the fuel subsidy plans had been shared with the fund. However, there is still no sign of Pakistan reaching the staff-level agreement with the IMF any time soon.