Officials say a strategy is being developed to address the potential economic fallout from increased petroleum imports and to propose solutions. The government has reiterated that its top priorities remain food and energy security.

Sources reveal that authorities have decided to establish strategic reserves of essential food items in partnership with the private sector, with the federal government set to bear storage costs.

Pakistan has also assured the IMF that subsidies on petroleum products will be limited to low-income groups. Negotiations with provincial governments regarding subsidy amounts and implementation mechanisms are said to be in their final stages.

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Meanwhile, the government is aiming to pass on the burden of rising oil prices to consumers in the near future. Officials noted that maintaining petroleum prices has already led to an increase in consumption.

The IMF has further demanded the removal of all tax exemptions in the upcoming fiscal year. Additionally, it has called for the full implementation of sales tax and excise duties on fertilizers and agricultural chemicals.