International Monetary Fund has asked Pakistan to immediately raise petrol and diesel prices and avoid providing subsidies on fuel, sources said on Friday.
IMF Calls for Immediate Fuel Price Hike
ISLAMABAD: The International Monetary Fund urged Pakistan to increase petrol and diesel prices without delay. Officials discussed the issue during virtual talks between Pakistani authorities and an IMF delegation.
Sources said the IMF asked the government to pass any rise in petroleum prices directly to consumers and avoid offering subsidies on petrol and diesel.
PDL Target Must Be Protected
The IMF also stressed that Pakistan must meet its Petroleum Development Levy (PDL) target of Rs1.468 trillion by June 30.
Government data shows authorities collected Rs822 billion in PDL from July to December, which accounts for over 60% of the annual target.
Energy-Saving Measures Under Discussion
During the talks, both sides discussed proposals to save energy and control the current account deficit.
One proposal suggests shifting schools and colleges to online classes in the first phase. In the second phase, universities and government offices may adopt smart working arrangements.
Plan to Cut Energy Use
Officials also proposed fixed opening and closing hours for markets and shops. Authorities may also encourage grocery stores and restaurants to expand delivery services to reduce energy consumption.
Sources said officials will soon present a detailed implementation plan to the government.
Work-From-Home Policy Under Review
The federal government is also considering a work-from-home policy as part of a national fuel-saving strategy. Officials began reviewing this option after rising concerns about oil supply disruptions in the Middle East.
Strait of Hormuz Tensions Raise Concerns
The ongoing conflict between the United States and Iran has disrupted shipping through the Strait of Hormuz.
Nearly one-fifth of the world’s seaborne crude oil passes through this route, along with large volumes of liquefied natural gas.
Iran’s Islamic Revolutionary Guard Corps claimed on Wednesday that it now has “complete control” over the strategic waterway.
Government Preparing National Energy Plan
According to sources, Pakistan has started preparing a national energy conservation plan.
Officials are considering online classes and smart working systems, similar to measures used during the COVID-19 pandemic, to reduce fuel consumption and manage energy demand.