Pakistan to keep energy subsidies unchanged against IMF advice

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pISLAMABAD Reuters – Pakistan said on Saturday it would maintain subsidies to keep fuel and power prices steady for consumers, going against International Monetary Fund IMF recommendations as the country seeks to boost its rescue package with the fund.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe IMF said on Monday that Pakistan had agreed to roll back unfunded subsidies to the oil and power sectors ahead of the resumption next month of a review of the 6 billion package signed in July 2019.p

pBut Prime Minister Shehbaz Sharif rejected a proposal to raise the prices of petroleum products “so as not to burden the consumers”, a finance ministry statement said.p

pThe prices are reviewed every two weeks. p

pPakistan is set to give more than 2 billion in subsidies to the oil and power sectors from April to June, which was announced by ousted Prime Minister Imran Khan in his last days in power.p

pFuel and electricity prices have been the subject of public pressure amid doubledigit inflation.p

pAn IMF mission is due to arrive in Pakistan in May to resume discussions over policies for completing the seventh review of the countrys Extended Fund Facility EFF, which Islamabad has asked the IMF to increase the size and duration of.p

pIf the IMF review is cleared, Pakistan will get more than 900 million, which would in turn unlock additional external funding.p

pThe South Asian nation is in dire need of external finances due to a widening current account deficit and foreign reserves falling as low as 10.5 billion, equivalent to less than two months of imports.p

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pp Reporting by Asif Shahzad Editing by Helen Popperp

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