The hope of the masses to get cheaper petrol was broken as the International Monetary Fund (IMF) has raised reservations about the move of PM Shehbaz Sharif. With the petrol hikes and tensions around the IMF turmoil, the cost of living has increased exponentially for the average person in Pakistan.
Esther Perez, the IMF’s resident representative for Pakistan, told the publication that the lender was not consulted on the government’s plan to raise fuel prices for wealthier motorists to finance a subsidy for lower-income people.
“Fund staff are seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities,” said Perez.
Implementation is set to begin soon and the terms of release depend on beneficiaries being qualified and registered with BISP. However, this condition is also dependent on motorbike owners having digital access to banks and being registered. Likewise, there are fears that the plan may not be as successful as complications may arise with the terms of the subsidy.
The other question is whether this scheme has been run by the IMF. If it is, then other subsidies can also be considered since some semblance of relief should be a priority for the government. Relief packages make sense, but there is also the question of bearing the costs. As mentioned, the terms of the scheme are unclear and the optics of this are also apparent. However, if this has a positive impact, similar schemes can be investigated.
The government of Pakistan must come forward and talk with the IMF and take the fund into confidence over the schemes and resolve the reservations raised by it on the scheme else the relief provision to the common masses will only remain a dream.
