The IMF (International Monetary Fund) has objected to the cheap Petrol scheme and has rejected the initial proposal by the Pakistani Government. The Pakistani Government has announced a subsidy of Rupees 50 per liter for motorbikes, rickshaws, and cars up to 800cc. Although! The government has planned to increase the petrol prices for car owners by Rupees 50 per liter and relieve the lower-income segment of society.
However, the media reports, the lender body has raised some questions. Including the subsidy amount for this particular scheme and where it will come from.
How many consumers come under this plan? And how much loss will the Government face?
The International Monetary Fund has asked Capital Islamabad to provide a detailed proposal for this plan. As per resources, a virtual meeting is held between both sides. Where the IMF stressed the preparation of the revised plan. The global body also emphasized the significance of providing more specific and efficient subsidies to poor individuals.
Representative of IMF States:
The global lender dubbed the IMF representative states that Pakistan did not consult with us regarding the petrol subsidy proposal. Moreover, Perez Ruiz states, “IMF is seeking more details on the scheme in terms of its operation, targeting, and protection against fraud and abuse. And will carefully discuss all of the elements with the authorities”.
The Statement of the IMF came after our Prime Minister Shahbaz Sharif announces a new relief package for the low-income class under which they will be given a petrol subsidy of Rupees 50 per liter.
Perez Ruiz added, “As a general matter The IMF sees considerable support for those eligible for government aid through the unquestioning Kafalat cash transfer scheme. As the most direct way to assist Pakistan’s most vulnerable in society”.
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