Webdesk: According to an IMF official, a long-awaited loan agreement with the IMF will signed shortly. But after a few remaining issues, including a fuel price mechanism, resolved.
Since early February, negotiations have been underway to release $1.1 billion to the 220 million-person, cash-strapped, nuclear-armed nation.
Last week, Prime Minister Shehbaz Sharif revealed a plan to charge wealthier consumers more for fuel to subsidise costs for the poor. Poor have been struck hard by inflation, which was at its highest in 50 years in February.
The petroleum ministry said the initiative will charge rich and poor Rs100 a litre differently.
On Thursday, Petroleum Minister Musadik Malik told Reuters that his government has six weeks to figure out pricing. He called it a poverty alleviation program, not a subsidy.
Esther Perez Ruiz, claimed the government hadn’t contacted the institution about the fuel pricing policy.
Moreover, Ruiz told that a staff-level agreement will inked if the fuel scheme resolved.
The petroleum and finance ministries did not reply to requests for comment.
Moreover, Pakistan needs the IMF to provide a $1.1 billion tranche from a 2019 $6.5 billion bailout to fund four weeks of imports.
Ruiz said the fund would ask the government for further specifics about the gasoline idea. Including how it would be implemented and how abuse would be prevented.
The finance minister stated this month that the agreement was “extremely close” after Islamabad devalued the rupee, lifted subsidies, and raised energy costs.
