The International Monetary Fund (IMF) has reportedly asked Pakistan not to reduce petrol and diesel prices as the situation escalates in Middle East.
IMF has urged the government to pass on any changes in global oil prices directly to consumers during a virtual discussions between Pakistani authorities and an IMF delegation.
According to sources, the IMF said that the government should avoid providing any subsidy on petroleum products, including petrol and diesel.
They also asked Pakistan to immediately pass on any increase in fuel prices to consumers, instead of absorbing the cost through government support.
The IMF also said that Pakistan must ensure it meets its petroleum development levy (PDL) target of Rs1.468 trillion by June 30.
Senate panel warned of fuel price hike and possible shortages
Rising tensions in Iran may soon push up petroleum prices in Pakistan, officials have warned, raising fears of added pressure on consumers already facing high living costs.
The Secretary of the Petroleum Division shared the concern while briefing the Senate Standing Committee on Devolution. He told the panel that if the situation in Iran does not improve, fuel supplies across the region could also come under strain. This, he said, may not only increase prices but could also create the risk of shortages.
The meeting was chaired by Senator Zamir Hussain Ghumro, who was unanimously nominated to preside. Senators Sardar Al Haj Muhammad Umer Gorgaij and Poonjo Bheel attended, while Senator Jan Mohammad Buledi joined as a special invitee.
During the session, the committee also took up the issue of free electricity promised to residents of Islamkot under the Thar coal project. Senator Poonjo Bheel said locals were supposed to receive 300 free units of electricity each month under an agreement, but were still being sent bills. Officials responded that the government had approved 100 free units per month for 4,688 consumers in the area.
PM Shehbaz forms high-level committee to prevent fuel shortage
Prime Minister Shehbaz Sharif formed an 18-member high-level committee to ensure the uninterrupted supply of petroleum products across the country.
The main objective of this initiative is to prevent fuel shortages and avoid abnormal price increases in any emergency situation.
Federal Finance Minister Muhammad Aurangzeb will head the committee. The Federal Minister for Petroleum and the Minister for Power will also serve as members.
In addition, the Secretary of Finance, the Secretary of Petroleum, the Chairman of the Federal Board of Revenue and other senior officials have been included to comprehensively review all financial, administrative and technical aspects.
The committee has been directed to conduct a detailed daily review of the country’s available petroleum reserves, import schedule, and overall supply and demand situation.
