Pakistan’s adherence to the IMF’s Extended Fund Facility has resulted in a wave of price hikes, with the public bearing the brunt of increased costs. Stricter conditions, including elevated petroleum levies, have hindered the government’s ability to offer price relief. Petrol prices have reached PKR 252.10 per liter, while diesel climbed to PKR 258.43 per liter in recent months.
From July to September 2024, petroleum levy collections totaled PKR 261.69 billion, a significant increase compared to last year. The IMF-mandated revenue target for this fiscal year is PKR 1,281 billion. This financial strategy, aimed at stabilizing external accounts, has inadvertently exacerbated inflation.
The compounded effect of rising energy prices and overall inflation has intensified the cost-of-living crisis for many Pakistanis. While the IMF programme ensures financial discipline, public sentiment increasingly reflects dissatisfaction with the socioeconomic consequences. Policymakers continue to face the challenge of balancing fiscal responsibility with public welfare .
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