According to a report by Reuters, the much-needed and awaited loan agreement between Pakistan and the International Monetary Fund will be finalised once few issues, including the federal government’s fuel subsidy programme, are discussed and agreed on.
The PDM-led government has been struggling to convince the IMF of releasing the loan tranche of $1.1 billion that could temporarily shore up the foreign reserves of the cash-strapped country. The government had last week announced a fuel subsidy – intended to help the poor by charging more for the petroleum prices from the affluent section of the society.
However, the excitement of the announcement was short-lived as the IMF said that the government had not consulted it prior to the announcement. In the latest development, it now appears that the IMF has sought a detailed plan from the federal government so as to ensure that there remains protection in the system from potential abuse of the subsidy by the rich.