IMF and Pakistan agree to pursue  ongoing program, rising fuel prices

The Pakistan Muslim League-Nawaz (PML-N) government successfully brokered with the International Monetary Fund (IMF) on Sunday and both reached the conclusion that the current program should continue.

The current government and the IMF also agreed that the former government’s subsidy for electricity and petrol would be phased out. That means the price of fuel and electricity will continue to rise.

In this respect, sources said that in discussions, Pakistan has agreed to reforms to boost revenue while the IMF has agreed to continue subsidizing the poor in Pakistan.

The IMF does not oppose the income support program and has also agreed to maintain the health card mechanism, according to reports.

Sources also indicated that Pakistan has assured that efforts will be made to ensure the independence of the SBP and this month, Pakistan and the Fund’s technical team will work to expand the program. The technical team will look at the bi-lateral data.