The International Monetary Fund (IMF) has urged Pakistan to maintain fiscal stability, reduce rising circular debt in the energy sector and identify alternative revenue sources if the government decides to reduce the petroleum levy.
The IMF mission is currently in Pakistan to review the country’s progress under its ongoing program. Pakistani authorities assured the mission that structural reforms would continue despite the ongoing Gulf conflict and said the impact of higher fuel prices would be passed on to consumers.
The government also informed the IMF that targeted subsidies have been introduced to support vulnerable segments of society. The review is focused on key areas including fiscal reforms, energy-sector reforms and revenue measures.
Successful completion of the IMF review could unlock around $1.2 billion in financing for Pakistan.
