Government assures IMF it will pass on the burden of rising fuel costs

Pakistani authorities have assured the International Monetary Fund (IMF) that, should global fuel prices rise, the financial burden will be passed on to the public; however, targeted assistance will continue to shield vulnerable segments of society from the impact.

According to a report by a private TV channel, the IMF mission currently visiting Pakistan has emphasized the need for sustained measures to maintain fiscal stability, given the country's financial situation and mounting debt.

IMF Focus on the Energy Sector

The IMF mission also stressed the importance of continuing effective measures to curb the rising circular debt in the energy sector. According to the mission, steps to limit the growing volume of debt within the energy sector are essential for fiscal stability.

The issue of the fiscal gap arising from a potential reduction in the petroleum levy was also discussed during the negotiations. The IMF highlighted the need to identify alternative revenue sources to bridge this gap.

Assurance to Continue Reforms Despite the Gulf Conflict

Pakistani officials informed the IMF that the government would proceed with structural reforms despite the ongoing Gulf conflict. They also reiterated the commitment to pass on the impact of fuel price hikes to the public.

According to the government's stance, vulnerable sections of society will not be left entirely exposed to rising fuel prices; instead, targeted subsidies have been introduced to protect them. The aim of these targeted subsidies is to provide specific assistance to needy individuals and segments of society during periods of increased financial strain, thereby mitigating—to some extent—the impact of rising fuel prices on them.