Islamabad June 2 2022: Government has to jack up petrol and diesel prices by another Rs 23.05 and Rs 9.02 to meet IMF condition of zero cash subsidy on fuel.
Even after increase of Rs 60 per liter in petroleum prices, government is bearing subsidy of Rs Rs 9.02 per liter on Petrol, Rs 23.05 per liter on High Speed Diesel and Rs 8.08 per liter on Light Diesel Oil. While government is charging tax of Rs 3.62 per liter on sales of Kerosene oil.
IMF in a statement at the conclusion of talks with Pakistan stressed for taking concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives.
Increase in petroleum and electricity prices will help to narrow divergence and corrections required in the current account and fiscal deficit identified during the meetings.
