ISLAMABAD: The International Monetary fund (IMF) has agreed to the continuation of the prime minister’s fuel subsidy for the existing beneficiaries but has asked Pakistan not to extend the scheme to include additional consumers, sources said.
According to sources negotiations between Pakistan and the IMF are ongoing, with the fund yet to agree to a reduction in the petroleum levy on petrol and diesel.
The IMF has reportedly agreed to provide the prime minister’s fuel subsidy to existing beneficiaries but has called for the scope of the programme to remain unchanged. The fund has proposed limiting the subsidy to motorcycle, three-wheelers and vehicles with engine capacities of up to 800cc.
The IMF mission is scheduled to hold another meeting with officials of the ministry of petroleum, with the Pakistani delegation to be held by the petroleum minister. Discussions will also cover the gas tarriff structure and circulate debt in the gas sector.
Meanwhile work has begun on the preparation of the memorandum of economic and financial policies between Pakistan and the IMF. The IMF mission is holding discussions with officials from the petroleum ministry and power division.
Sources said the sugar policy has yet to be finalised due to Sindh’s reservations over the proposed deregulation of the sugar sector.
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