"PDM's announcement of petrol subsidy is like a person going to the doctor drunk on the day he was supposed to get a recovery certificate."


After the government announced that a limited amount of petrol will be provided at subsidized rates to motorcyclists and those using vehicles smaller than 800 ccs.


It should be remembered that the government has only made an announcement in this regard, but how and to what extent this discount will be given is yet to be decided.


After the government announced plans to reduce petrol prices, questions are being raised about whether the PDM coalition government is taking a political decision to subsidize petrol, which could add to the country's economic woes. Then it is really a proactive plan that will provide some relief to the public in the wave of extraordinary inflation.


The reason for this question is that there is a staff-level agreement between the government and the IMF which has not yet been finalized, based on which the loan program is to be revived and Pakistan is to receive the loan tranche.


On the other hand, the IMF says that the government of Pakistan did not consult them before announcing this new project.


In such a situation, according to analysts, the IMF may object to any new government scheme and the debt restructuring program may be further delayed.


Is there a petrol program at discounted rates?


It should be noted that the government has announced to provide petrol at discounted rates to customers using motorcycles and small vehicles, which will be implemented after six weeks.


Federal Minister of State for Petroleum Dr. Mossadegh Malik said last day that 'no subsidy is being given in this discount program because we will take more money from the rich and that money will be given to the poor. They will use it to give petrol at a discounted price.'


According to him, no money will be used for this program from the government treasury or loan money.


According to Dr. Mossadegh Malik, "motorcyclists and small vehicle owners use almost half of the total consumption of petrol in the country and under this program, fifty percent of consumers will receive more money and the remaining fifty percent will be given petrol at a discounted price." will be given.'


According to Mossadegh Malik, this program will be implemented in three phases, in which "the first phase is to raise money for which the price of petrol will be increased and the extra money will be deposited in a bank account, and from the same account to the poor people." Money will be provided to supply petrol.'


According to him, the second stage will be the registration of motorcycles and vehicles for which the user's name, identity card number, registration number, and phone number will be used.


'We will register and send a message to the phone that you are registered. These users will send a message to a number, then they will receive a code which is being scanned at the petrol pump where the ID card and one-time password will be inserted and through this, it will be known How much fuel can this person pour at discounted rates and how much has he already poured?


According to Mossadegh Malik, if a person can be given a total of 21 liters, then no more than two to three liters of fuel will be given in a day.


Mossadegh Malik claimed that poor people use an average of 21 liters per month and this figure is based on statistics.


Mossadegh Malik says, 'In this way, people will use less petrol and try to move towards smaller vehicles.'


'The government did not consult the IMF on the proposed project'


IMF representative Esther Preez told BBC Urdu that Pakistani officials did not consult IMF staff before announcing the recent fuel subsidy plan.


He said that 'Fund staff are aware of the details of the scheme, including value, targeting, fraud protection, which will be discussed with the authorities.'


He said that the IMF is in favor of directly helping the needy under the Kafalat Cash program.


Could the government's plan cause problems?


It should be noted that during the Tehreek-e-Insaf government, Prime Minister Imran Khan announced a subsidy on oil prices and later this decision was criticized by various analysts.


However, the current government claims that no government money will be used in this program.


Economist Khurram Hussain says, 'This is a complex project and the real question is how it will be implemented.'


He said that 'it is possible to collect money from the way the plan has been made and as announced, but the question is on how the benefit of this money will be delivered to the rightful.'


When asked whether the government's program could affect the agreement with the IMF, he said it would depend on how much it would have a financial impact.


"If the government really succeeds in taking money from the rich and subsidizing the poor, it may not affect the IMF program."


It should be noted that in February, the managing director of the IMF, Kristelina Georgieva, said in a statement that "we want the subsidy not to benefit the rich, but to benefit those who are poor and entitled."