IMF ‘awaits clarity’ on petrol subsidy scheme
ISLAMABAD (Web Desk) – The International Monetary Fund (IMF) is awaiting clarity on petrol subsidy scheme as Pakistani authorities have not yet withdrawn the proposed cross-fuel subsidy scheme in writing to the Fund, reports a media outlet.
The scheme is being regarded as one of the reasons for delay in the agreement.
The lender had raised objections to the proposal, asking Islamabad to share details about the implementation of the plan that was announced without ‘consultation’. Minister of State for Petroleum Musadik Malik had rejected the perception that the subsidy would violate the conditions adding the ministry had responded to all the queries in detail.
The media outlet, quoting an unnamed finance ministry official, reported that the IMF didn’t ask for withdrawal of the cross-fuel subsidy in writing.
PAKISTAN PLACES FIRST ORDER FOR DISCOUNTED RUSSIAN CRUDE: MUSADIK
Pakistan had placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow, the petroleum minister said, with one cargo to dock at Karachi port in May.
The deal will see Pakistan buy crude oil only, not refined fuels, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, Minister Musadik Malik told Reuters on Wednesday night. “Our orders are in, we have placed that already,” he said.
“Yes it is true that we will be getting only crude, not refined oil,” Malik said in response to confirm sources information whether that’s correct. He said Pakistan’s Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included later after a trial run.
Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March.