Finance Minister Miftah Ismail announced on Thursday a hike in the price of petroleum products after the International Monetary Fund (IMF) demanded the withdrawal of subsidies to revive the US $ 6 billion bailout programme for Pakistan.
At a press conference in the capital Islamabad , the finance minister explained that the decision was taken in order to ensure the revival of the IMF programme.
He said, despite the massive increase in the price of petroleum products internationally, the government was still bearing losses.
The finance minister stressed that after the hike, the rupee would strengthen and financial markets would witness stability in the coming days.
After the increase, the new prices are as follows:
Petrol — Rs179.86
Diesel — Rs174.15
Kerosene oil — Rs155.56
Light diesel — Rs148.31
On Wednesday, the IMF mission concluded its talks with Pakistan authorities in Qatari capital, Doha without a word on reviving the stalled Extended Fund Facility (EFF).
In its statement, the IMF mission said deviations from the policies agreed in the last review, partly reflecting the fuel and power subsidies announced by the authorities in February, required concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve programme objectives.
“The mission has held highly constructive discussions with the Pakistani authorities aimed at reaching an agreement on policies and reforms that would lead to the conclusion of the pending seventh review of the authorities’ reform program, which is supported by an IMF EFF arrangement,” said the IMF in its statement at the conclusion of talks.