ISLAMABAD: International Monetary Fund (IMF) has rejected Pakistan’s initial proposal for subsidy on petroleum, citing sources. “Lending institution has demanded complete plan of petroleum subsidy from government,” sources said. “IMF has demanded comprehensive plan of per litre 50 rupees subsidy on petroleum,” sources at Ministry of Finance shared.

Pakistan has been in virtual contact with IMF and institution has insisted for preparation of revised plan of subsidy on petroleum, sources said.

“Government had proposed subsidy on fuel for motorcycles and small 800 CC vehicle owners,” according to sources. International Monetary Fund is demanding of government for an effective and targeted subsidy to poor segment of society, sources added. Earlier, IMF wanted friendly countries to honour their commitments to fund cash-strapped Pakistan before multilateral lender signs off on $ 6.5 billion bailout programme.

Pakistan was trying to get written assurances from Saudi Arabia and United Arab Emirates about external financing to strike staff-level agreement with IMF.

Sources said that PM Office, foreign ministry and finance ministry have become active to meet condition of IMF for confirmation of $ 3 billion in external funding from Saudi Arabia and UAE.

IMF is seeking written assurance from executive directors of Saudi Arabia and UAE about external financing to Pakistan, sources said.

Published in The Daily National Courier, March, 30 2023

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