The International Monetary Fund (IMF) and Pakistani authorities will discuss the merits of the relief package, recently announced by Prime Minister Imran Khan, during the upcoming seventh review of the IMF program for Pakistan under the Extended Fund Facility (EFF).
Answering a question asked by a ProPakistani scribe, the IMF’s Resident Representative said the IMF would also consider the other measures aimed to promote macroeconomic stability amidst a challenging external environment.
Prime Minister Imran Khan on Monday announced a relief package for the inflation-hit public and slashed the prices of petrol and diesel by Rs. 10 per liter and the price of electricity by Rs. 5 per unit. He also announced that the prices of petrol and electricity would not be increased till the federal budget of the FY2022-23.
According to Dr. Abid Qaiyum Suleri, who serves in the Prime Minister’s (PM) Economic Advisory Council, the government has found a “specific fiscal space of Rs. 250 billion” for providing relief in energy prices.
It is pertinent to mention here that the government, in November 2021, had committed to introducing a supplementary budget as part of an agreement with IMF for a net fiscal adjustment during the remaining part of the current fiscal year. A monthly raise of Rs. 4 per liter in petroleum levy on major petroleum products was also part of the commitment.
