ISLAMABAD: The International Monetary Fund (IMF) has rejected the proposed petrol subsidy proposal.
According to sources, the IMF has strongly objected to the government’s scheme of cheap petrol for motorcycles and vehicles below 800 cc.
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IMF raised the question that how much subsidy will be required for this scheme. Where will it come from, and how many consumers will it have? How much will the loss be in the scheme? IMF has asked the government for a complete plan in this regard.
Sources say there has been a virtual communication between Pakistan and the IMF, in which the IMF has insisted on developing a revised subsidy plan for petrol. The IMF has been pushing for more effective targeted subsidies to low-income people.