For the last couple of days, there is a fuss going around in the market about cheaper fuel. Govt is under immense pressure from the general public on increasing fuel prices. The Govt has announced a subsidy scheme on petrol for motorcyclists, rickshaw drivers, and sub 800cc cars. There are many ambiguities about the scheme and in a recent development, Govt shelves Sasta Petol Scheme.
IMF is in control of monetary decision-making in Pakistan these days. Minutes after the Govt announced Sasta petrol scheme, IMF had some serious reservations about this. The IMF was worried about the rightful distribution of this petrol scheme. Also, many technicalities were unaddressed. The scheme was not clear and had many ambiguities.
IMF has made the Govt roll back this scheme. Now is the time that Govt should announce a much simple scheme. Govt should launch a lower Ron fuel as an option. That’s a more realistic scheme.