ISLAMABAD: Pakistan plans to cut fuel costs to pass on the benefits of easing global oil prices to its citizens enduring inflation at a 13-year high, finance minister Miftah Ismail said on Wednesday, saying a proposal for the reduction had been sent to Prime Minister Shehbaz Sharif for approval.
According to his official Twitter account, Sharif has ordered the ministries of petroleum and finance to “pass on the reduction” in international prices to the people. His government has raised levies on gasoline and diesel sales multiple times in the past month as part of efforts to fulfill conditions set by the International Monetary Fund for the resumption of a bailout program.
“Finance Minister Miftah Ismail says the summary to reduce petroleum prices will be sent to Prime Minister Shehbaz Sharif for necessary action on Wednesday,” Radio Pakistan reported. “He said the prices of petroleum will be reduced on the directives of the Prime Minister, to provide relief to the people.”
“Ismail said the Prime Minister sincerely wants to give the benefits of low petroleum prices in international market to the people without any delay.”
Pakistan, home to Asia’s second-fastest inflation, needs at least $41 billion in the next 12 months to repay debt and fund imports. Successful resumption of the IMF program will also help Pakistan win easier access to funds from other lenders.
On Wednesday, Bloomberg reported that the IMF and Pakistan had reached an agreement on the revival of the stalled loan program, which was signed in 2019.
