Fuel subsidy plan ‘not cleared with IMF’

THE International Monetary Fund (IMF) was not consulted on the government’s recent move to announce a fuel subsidy, the lender’s key official in Islamabad has said, adding that it was seeking “greater details” on the scheme, Bloomberg reported. The statement from Esther Perez Ruiz, the IMF’s resident representative for Pakistan, came two days after the government unveiled a Rs50 subsidy on each litre of petrol for low-income people. A day later, the government doubled the subsidy to Rs100, which could be availed by the owners of motorbikes and cars of up to 800cc. “Fund staff are seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities,” Ms Ruiz told the publication. However, she said Pakistan has made “substantial progress” towards meeting policy commitments needed to unlock critical IMF funding, though the country has a few more tasks before it can get the loan it needs avoid a default.