IMF receives Pakistan’s plan on fuel subsidy

IMF receives Pakistan’s plan on fuel subsidy

According to reports, Pakistan submitted a complete plan to the International Monetary Fund on Friday, intending to receive a financial package.

The strategy offered to the IMF focused on providing subsidies to just the poorest members of society; also, the conference included a lengthy debate on power losses and boosting electric costs.

According to development sources, the budget and current account deficit were also discussed, and the government delegation presented their following strategy in this respect. Recommendations for cost-cutting were made. According to reports, the priorities of the development budget were also considered.

A federal administration led by Finance Minister Miftah Ismail is presently in Doha negotiating an IMF assistance package to stabilise the economy, which has been in a downward spiral since the no-confidence vote against former Prime Minister Imran Khan was successful.

The Pakistan stock exchange fell on Monday as the government chose to keep the fuel and energy price subsidies, raising concerns about the accord with the International Monetary Fund (IMF).

According to an expert at Pearl Securities, a significant decline is predicted because the government has opted to maintain gasoline and electricity price subsidies.

“This action has raised worries about the expected restart of the IMF programme, which would postpone funds to shore up the State Bank of Pakistan’s (SBP) declining foreign exchange reserves, which now stand at $10 billion.”

Furthermore, the rupee is under constant pressure, reaching unprecedented highs. Similarly, worldwide oil prices remain above $100 per barrel,” he noted.

“A drop in global markets, uncertainty over the terms of the IMF program’s restart, and delays in accepting the desired Saudi aid package all played a part in the downbeat close,” he said.

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