KARACHI: The government on Friday announced a reduction in the per liter prices of petrol and high-speed diesel by Rs10.2 and Rs2.33, respectively, in a move described as a “major Eid gift” for people by Prime Minister Shehbaz Sharif’s administration.
Pakistan sets fuel prices on a fortnightly basis, adjusting for fluctuations in the international energy market and rupee-dollar parity, allowing the government to pass on the effects to consumers.
Two weeks ago, the prime minister promised substantial relief, saying his administration would cut the costs of petrol and diesel by Rs15.4 and Rs7.9, respectively.
However, the notification released by the finance division surprised everyone, as it only reduced the per liter prices of petrol and diesel by Rs4.74 and Rs3.86.
“The prices of Petroleum products have seen a mixed trend in the international market during the last fortnight,” said the finance division in the latest notification. “The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market.”
The notification listed down the new petrol and diesel prices applicable from Saturday, June 15, as Rs258.16 and Rs267.89, reflecting the decrease of Rs10.2 and Rs2.33, respectively.
“On the occasion of Eid Al-Adha, Prime Minister Muhammad Shehbaz Sharif announces a major Eid gift for the public,” the government announced in a social media post. “There is a significant reduction in the price of petrol by 10 rupees and 20 paise per liter, and a decrease in the price of diesel by 2 rupees and 33 paise per liter.”
“So far, a total relief of 35 rupees per liter on petrol has been provided to the public,” it added.
https://x.com/GovtofPakistan/status/1801684952314175803
Fuel prices are crucial in every economy, and they have become particularly significant for Pakistan, which has experienced high inflation recently.
This situation has transformed fuel pricing into not only an economic issue but also a politically sensitive one, as it impacts the cost of living and influences public sentiment toward the government.
Pakistan announces ‘major Eid gift’ for public by reducing petrol price by over Rs10 per liter
https://arab.news/nmq5n
Pakistan announces ‘major Eid gift’ for public by reducing petrol price by over Rs10 per liter
- Government sets fuel costs on a fortnightly basis after reviewing international prices, rupee-dollar parity
- PM Sharif’s administration says it has so far given a total relief of Rs35 rupees on petrol to Pakistani people
IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today
- Pakistan, IMF reached a Staff-Level Agreement in October for second review of $7 billion Extended Fund, climate fund program
- Economists view IMF bailout packages as essential for cash-strapped Pakistan grappling with a prolonged macroeconomic crisis
ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is set to meet in Washington today to review a $1.2 billion loan disbursement for Pakistan, state media reported on Monday.
Pakistan and the IMF reached a Staff-Level Agreement (SLA) in October for the second review of a $7 billion Extended Fund Facility (EFF) and the first review of its $1.4 billion Resilience and Sustainability Facility (RSF).
The agreement between the two sides took place after an IMF mission, led by the international lender’s representative Iva Petrova, held discussions with Pakistani authorities during a Sept. 24–Oct. 8 visit to Karachi, Islamabad and Washington D.C.
“The International Monetary Fund’s (IMF) Executive Board is set to meet in Washington today to review and approve $1.2 billion in loan for Pakistan,” state broadcaster Pakistan TV reported.
Pakistan has been grappling with a prolonged macroeconomic crisis that has drained its financial resources and triggered a balance of payments crisis for the past couple of years. Islamabad, however, has reported some financial gains since 2022, which include recording a surplus in its current account and bringing inflation down considerably.
Economists view the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders including the IMF, World Bank, Asian Development Bank and Islamic Development Bank.
Speaking to Arab News last month, Pakistan’s former finance adviser Khaqan Najeeb said the $1.2 billion disbursement will further stabilize Pakistan’s near-term external position and unlock additional official inflows.
“Continued engagement also reinforces macro stability, as reflected in recent improvements in inflation, the current account, and reserve buffers,” Najeeb said.
Pakistan came close to sovereign default in mid-2023, when foreign exchange reserves fell below three weeks of import cover, inflation surged to a record 38% in May, and the country struggled to secure external financing after delays in its IMF program. Fuel shortages, import restrictions, and a rapidly depreciating rupee added to the pressure, while ratings agencies downgraded Pakistan’s debt and warned of heightened default risk.
The crisis eased only after Pakistan reached a last-minute Stand-By Arrangement with the IMF in June 2023, unlocking emergency support and preventing an immediate default.
