ISLAMABAD – The International Monetary Fund (IMF) has said that thePakistani government did not consult it before announcing the petrol reliefpackage for the low-income people.
IMF’s resident representative for Pakistan Esther Perez told * Bloomberg *thatthe global lender was not consulted on the government’s plan to raise fuelprices for wealthier motorists to finance a subsidy for lower-income people.
Perez said that the IMF staff were seeking details on the scheme in termsof its operation, cost, targeting, protections against fraud and abuse, andoffsetting measures, and will carefully discuss these elements with theauthorities.
On Monday, Minister of State for Petroleum Musadik Malik announced that thefederal government decided to subsidise petrol up to Rs100 formotorcyclists and owners of vehicles up to 800cc.
He said the decision to provide fuel at subsidised rates will beimplemented within six weeks.
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Earlier, it was decided to provide a subsidy of Rs50 per litre.
The minister said under a comprehensive strategy, subsidised petrol will beavailable to motorcyclists and owners of vehicles up to 800cc. He furthersaid owners of vehicles above 800cc would be charged full price.
“The owners of big vehicles will pay more for petrol. The rich will payRs100 more for petrol while the poor will pay Rs100 less. 210 millionpeople are poor in a population of 220 million, we stand with poorPakistan.”
