New Delhi, April 7: The International Monetary Fund (IMF) has urged Pakistan to promptly resolve discrepancies in petroleum product pricing. These irregularities stem from subsidies provided by the central government to consumers, as global prices surge due to the ongoing conflict in Iran.
According to a report by Dawn, a senior government official confirmed that the IMF remains concerned about the existing discrepancies, particularly regarding diesel prices, and is pressing for a swift resolution.
Initially, the government attempted to restore financial balance by adjusting the Petroleum Development Levy (PDL) between petrol and diesel. This approach later shifted towards targeted subsidies, which provinces are now financing by adjusting their budgets.
Currently, the loss on the PDL for diesel is zero, despite it being set at 80 rupees per liter in the budget. This loss is being offset by higher rates on petrol. However, relief diminished when Prime Minister Shehbaz Sharif announced a reduction of 80 rupees per liter in petrol prices. Reports indicate that this situation will need reassessment in the coming days.
Increased petrol consumption has somewhat mitigated the decrease in diesel PDL. Presently, petrol consumption averages around 660,000 tons per month, while diesel consumption is approximately 600,000 tons. However, demand for diesel is expected to rise during the current harvest season.
Dawn cited senior officials stating that the staff-level agreement announced by the IMF on March 29 remains intact, and the federal petroleum subsidy of 152 billion rupees was presented with prior knowledge from the IMF.
Sources informed Dawn that Finance Minister Muhammad Aurangzeb and his team will update IMF management on provincial contributions during the upcoming IMF and World Bank meetings. Nevertheless, the IMF chief continues to oppose universal subsidies on petroleum products.
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My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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