Pakistan is evaluating a move to daily fuel price adjustments to better respond to global oil market fluctuations. The current system updates fuel rates weekly, a change implemented after the Iran war caused sharp international price swings.
The International Monetary Fund (IMF) is reviewing Pakistan’s economy under its $7 billion Extended Fund Facility (EFF) and $1.4 billion Resilience and Sustainability Facility (RSF). The recent sharing of the Memorandum of Economic and Financial Policies (MEFP) outlines the country’s commitments on fiscal, monetary, and structural reforms. Completion of the review could release approximately $1 billion in new funding.
The shift toward daily pricing aims to align domestic fuel rates more closely with international markets, though practical challenges remain in regulating retail pump charges.
Global oil disruptions, including Iran’s temporary closure of the Strait of Hormuz, which handles the majority of Pakistan’s fuel imports, recently forced significant increases in petrol and diesel prices. The government is simultaneously promoting measures to limit consumption and contain further price shocks.
