Pakistan assures IMF of passing higher fuel costs on to consumers: Report

ISLAMABAD: The Pakistani government has assured the International Monetary Fund (IMF) that the impact of higher fuel prices will be passed on to consumers, while committing to continue structural reforms despite the ongoing Gulf conflict.

According to a report by a private television channel, the IMF has urged Pakistan to take sustained measures to ensure fiscal stability and contain the growing circular debt in the energy sector.

The IMF mission, currently visiting Pakistan, has called on Pakistani authorities to take effective and consistent measures to maintain fiscal stability amid the country’s rising debt burden.

The mission also emphasised the need to control the growing circular debt in the energy sector.

It highlighted the need to explore alternative sources of revenue to bridge any fiscal gap resulting from a reduction in the petroleum levy.

Pakistani officials assured the IMF that structural reforms would continue despite the ongoing Gulf conflict. They also assured the Fund that the impact of rising fuel prices would be passed on to consumers.

However, according to the Pakistani side, targeted subsidies have been introduced to protect vulnerable segments of society from the impact of higher fuel prices.

The measures are intended to provide specific assistance to those most in need while limiting the additional financial burden on low-income households.