The ongoing IMF program has significantly limited Pakistan’s ability to offer relief on petroleum prices. Amid rising global oil prices, the government faces pressure to implement fiscal reforms agreed upon under the $7 billion IMF bailout package. These reforms prioritize subsidy reductions and fiscal consolidation, leaving little room for cushioning the impact of increased fuel costs on the public.
Currently, petrol prices are projected to rise by Rs 3.00 per liter to Rs 251.38, while diesel may increase by Rs 2.87 per liter in December 2024. These adjustments follow a pattern of fortnightly reviews and align with the IMF’s recommendations to improve revenue collection through energy tariff hikes. The program also mandates the gradual elimination of subsidies and the introduction of targeted relief through social welfare programs like the Benazir Income Support Program (BISP)
Despite these measures, the burden on household budgets and transport costs continues to grow, exacerbating inflationary pressures. The government has struggled to balance IMF conditions with public relief, showcasing the challenges of implementing economic reforms in a politically charged environment
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