The International Monetary Fund has urged Pakistan to immediately pass on rising petroleum costs to consumers and avoid providing subsidies on petrol and diesel, according to people familiar with the discussions, who told ProPakistani.
The request was made during virtual talks between officials from the lender and Pakistani authorities as the country assesses the potential impact of rising global energy prices and supply disruptions.
The IMF also asked the government to ensure it meets its target of collecting Rs. 1.468 trillion through the petroleum development levy by June 30, the people said. Pakistan has already collected about Rs. 822 billion under the levy between July and December, exceeding 60% of the annual target.
Officials from both sides also discussed measures aimed at reducing energy consumption and containing pressure on the current account, the people said.
Among the proposals under consideration are shifting schools and colleges to online classes in the initial phase, followed by the adoption of flexible or smart working arrangements for universities and government offices.
Authorities are also evaluating fixed operating hours for shops and markets and encouraging restaurants and grocery stores to expand delivery services to limit fuel use.
The discussions come as Pakistan weighs broader fuel conservation measures amid uncertainty in global energy markets following escalating tensions between the United States and Iran, which have disrupted shipping through the Strait of Hormuz.
Roughly one-fifth of the world’s seaborne crude oil passes through the waterway, along with significant volumes of liquefied natural gas, making it a critical route for global energy supplies.
Pakistani authorities are also considering introducing work-from-home arrangements as part of a national fuel-saving plan should supply disruptions intensify, people familiar with the matter said. A detailed implementation strategy is expected to be presented to the government in the coming days.