ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif has asked the finance ministry to seek the removal of fuel levies from the International Monetary Fund to cushion consumers from rising oil prices driven by the Iran conflict, a senior member of Sharif’s cabinet said on Wednesday.
The move highlights Islamabad’s attempt to shield households from higher fuel costs while remaining bound by conditions under its $7 billion IMF bailout program, which limits subsidies and requires fiscal discipline.
Pakistan currently imposes petroleum levies of around Rs100 ($0.36) per liter on petrol and Rs55 ($0.20) per liter on diesel, a key source of government revenue under its IMF-supported reform framework.
“Prime Minister Shehbaz Sharif has directed the finance ministry to engage with the IMF on removing petroleum levies, aiming to provide relief of up to Rs100 ($0.36) per liter on petrol and Rs55 ($0.20) per liter on diesel to consumers,” a senior member of Sharif’s cabinet told Arab News, declining to be named as he was not authorized to discuss the proposal with the media.
He added that the government had already spent about Rs130 billion ($466 million) to stabilize fuel prices but warned that further increases may be unavoidable as consumption rises.
