The International Monetary Fund (IMF) has rejected Pakistan’s initial proposal for a subsidy on petroleum.
According to sources, “the lending institution has demanded from the government the entire plan of the petroleum subsidy.”
According to sources at the Ministry of Finance, “the IMF has demanded a comprehensive plan of per litre 50 rupee subsidy on petroleum.”
According to sources, Pakistan has maintained virtual communication with the IMF, which has demanded that a revised petroleum subsidy plan be prepared.
According to sources, “the government had proposed fuel subsidies for owners of motorcycles and small 800 CC vehicles.”
According to more reports, the IMF is pressuring the government to provide an efficient and targeted subsidy to the underprivileged section of society.
Prior to approving a $6.5 billion bailout program, the IMF demanded that friendly nations fulfill their promises to help cash-strapped Pakistan.
In order to reach a staff-level deal with the IMF, Pakistan was attempting to obtain written guarantees about external financing from Saudi Arabia and the United Arab Emirates (UAE).
The PM Office, the foreign ministry, and the finance ministry, according to sources, have stepped up their efforts to comply with the IMF’s requirement for the confirmation of $3 billion in external financing from Saudi Arabia and the UAE.
According to the sources, the IMF is requesting a written guarantee about foreign financing for Pakistan from the executive directors of Saudi Arabia and the United Arab Emirates.
The IMF rescue plan is not connected to elections in Pakistan, according to Esther Pérez Ruiz, a local representative for the organisation.
Esther clarified that it had not placed any condition for the revival of the loan programme for Pakistan. “We cannot interfere in the constitutional process of Pakistan through a loan programme.”