ISLAMABAD: Will Everyone Get Relief on Petrol? The International Monetary Fund (IMF) has proposed that fuel relief aimed at easing economic pressure caused by the Middle East conflict should be targeted at eligible individuals rather than provided to the general population, according to sources cited in the information provided.
Will Everyone Get Relief on Petrol? IMF Suggests BISP-Based Mechanism
Formal negotiations between Pakistan and the IMF under the Extended Fund Facility (EFF) have begun, with discussions focusing on economic reforms and progress toward programme targets.
The IMF mission, led by Iva Petrova, has proposed using the mechanism of the Benazir Income Support Programme (BISP) to identify people eligible for fuel relief. The proposal is aimed at directing financial assistance to those considered genuinely deserving.
EFF and RSF Reviews Under Discussion
The ongoing talks include an assessment of Pakistan’s progress on economic policies and reforms under the EFF. Discussions will also cover the third review of the Resilience and Sustainability Facility (RSF).
The IMF mission held an online meeting with Federal Minister for Finance Muhammad Aurangzeb, who expressed the government’s commitment to continued cooperation. According to sources, the finance minister also responded to concerns raised by the IMF mission chief, although details of those responses were not disclosed.
Rs853 Billion Discrepancy Raises Questions
Another issue discussed during the negotiations was an Rs853 billion statistical discrepancy between federal and provincial government accounts.
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According to sources, the IMF sought an explanation for the difference and asked what steps the government intends to take to address the issue. The matter relates to differences in government accounts and the accuracy of fiscal data.
IMF Raises Health and Education Spending Concerns
The IMF mission also expressed concern over Pakistan’s failure to consistently meet spending targets for health and education.
According to the information provided, combined spending on the two sectors during the previous fiscal year was around Rs370 billion below the target. The combined expenditure target had been set at approximately Rs3.5 trillion, while actual spending remained significantly lower.
The ongoing review therefore covers a range of issues, including fuel relief, fiscal data, economic reforms, programme targets and government spending on health and education.
