ISLAMABAD – The International Monetary Fund (IMF) would review the reliefpackage recently announced by Prime Minister Imran Khan to cut petroleumand electricity prices, it emerged on Wednesday.
The merits of the relief package, for which the government is expected todole out around Rs360 billion, would be discussed by IMF officials withPakistani authorities during its seventh review under the $6 billionExtended Fund Facility (EFF) program, reports said.
The IMF’s Resident Chief in Pakistan, Esther Perez Ruiz, told The News thatPakistani authorities and the IMF would discuss the recently-adopted reliefpackage and other measures to promote macroeconomic stability amidst achallenging external environment.
The IMF team would hold two-week-long virtual talks for its seventh review,starting from March 4.
A day earlier, an official of the Ministry of Finance ruled out thepossibility IMF would object to the prime minister’s move, saying therelief amount would be arranged by “cutting” various expenditures.
PM Khan on Monday slashed petroleum prices by Rs10 per liter and the powertariff by Rs5 per unit. He also announced some other relief measures,mainly for the information technology (IT) sector.
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The move comes at a time when Pakistan’s opposition parties are pushing fora no-confidence motion in parliament to dislodge PM Khan’s government.
“This is a Rs250-Rs300 billion relief package and will be met throughcutting different expenditures,” says Muzzamil Aslam, a spokesman forPakistan’s finance and energy ministries.
Apart from the cuts, the premier has promised to freeze further increase inenergy prices until the next budget, which will be announced in June.
The announcement of the relief package came a month after the IMF approved$1 billion disbursement to Pakistan after completing a sixth review of thecountry’s reforms under its $6 billion loan programme secured in 2019.
