Efforts by Pakistani authorities to persuade the IMF to adopt the scheme have been fruitless, causing the Staff Level Agreement to also be stalled.
According to sources, the scheme of providing cheap petrol for motorcycles and rickshaws has caused the IMF to back out. Meetings between Pakistani authorities and the IMF have been inconclusive, and reassurances from Saudi Arabia and the United Arab Emirates have been insufficient, forcing Pakistan to come up with a plan to raise another billion dollars from commercial banks.
It should be noted that the International Monetary Fund had previously rejected the government’s proposal to subsidize petrol and demanded a complete plan from the government.
It is clear that the federal government had introduced a new scheme for motorcycle and 800 cc car owners.
Minister for Petroleum, Mudasir Malik, had said in an interview with the media that petrol would be subsidized at Rs. 100 for motorcycle owners, and motorcycle owners would be given a subsidy of up to 21 liters per month.
Owners of cars with less than 800 cc capacity would be allowed to fill up to 30 liters per month, while owners of larger vehicles would be allowed to fill one tank per month.