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Pakistan assures IMF to avoid new fuel subsidy in upcoming budget

11:01 AM | 12 May, 2024
Pakistan assures IMF to avoid new fuel subsidy in upcoming budget
Source: File Photo

KARACHI – Pakistan is seeking fresh lending as International Monetary Fund (IMF) technical team arrived in Asian nation to discuss the next loan program.

Ahead of the formal talks, Sharif led PML-N government assured the IMF that it will not introduce new fuel subsidies or cross-subsidy schemes in FY24 and beyond, and will refrain from netting out cross-arrears without proper due diligence and independent auditing.

The circular debt stock stabilized in late 2023 and early 2024, supported by efforts to align energy tariffs with costs and ongoing anti-theft measures in the power sector.

Pakistan implemented a significant gas tariff increase on February 15 and is on track to meet its circular debt management plan target for FY24. However, restoring energy sector viability requires further cost-side reforms, such as improving transmission infrastructure, enhancing DISCO performance, and converting PHPL debt into public debt.

Meanwhile, the global lender emphasized need for regular energy tariff adjustments and broader reforms to restore energy sector viability. While Pakistan's progressive tariff structure protects vulnerable consumers, the Fund suggests replacing it with cash transfers in the long term.

IMF also stressed importance of addressing cost-side and infrastructure issues to achieve a sustainable solution for the energy sector.

Daily Pakistan Global Web Desk

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Pakistani Rupee exchange rate to US Dollar, Euro, Pound, Dirham, and Riyal - 19 June 2024

Pakistani rupee rates against US Dollar and other currencies on June 19, 2024 (Wednesday) in open market.

USD to PKR Rate Today

US dollar was being quoted at 277.50 for buying and 280.65 for selling.

Euro's buying rate stands at 296 and selling rate is 299 while British Pound rate is 349.7 for buying, and 353.25 for selling.

UAE Dirham AED was at 74.80 and Saudi Riyal at 72.80.

Forex Rates 

Currency Symbol Buying Selling
US Dollar USD 277.50 280.65
Euro EUR 296.00 299.00
UK Pound Sterling GBP 349.70 353.25
U.A.E Dirham AED 74.80 75.60
Saudi Riyal SAR 72.80 73.55
Australian Dollar AUD 182.00 184.00
Bahrain Dinar BHD 741.18 749.18
Canadian Dollar CAD 204.00 206.00
China Yuan CNY 38.43 38.83
Danish Krone DKK 40.18 40.58
Hong Kong Dollar HKD 35.66 36.01
Indian Rupee INR 3.33 3.44
Japanese Yen JPY 1.90 1.98
Kuwaiti Dinar KWD 909.34 909.34
Malaysian Ringgit MYR 59.30 59.90
New Zealand Dollar NZD 170.79 172.79
Norwegians Krone NOK 25.97 26.27
Omani Riyal OMR 723.88 731.88
Qatari Riyal QAR 76.42 77.12
Singapore Dollar SGD 203.65 205.65
Swedish Korona SEK 26.40 26.70
Swiss Franc CHF 311.90 314.40
Thai Bhat THB 7.58 7.73

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