International Monetary Fund has asked Pakistan to avoid broad-based subsidies on petroleum products and instead ensure sustainable, targeted relief measures, according to officials familiar with the discussions.

The directive comes amid rising global oil prices driven by geopolitical tensions, including the ongoing confrontation between Iran and the United States, which has increased pressure on fuel-importing economies.

Sources in the Finance Ministry stated that Islamabad has provided written assurances to the IMF, confirming it will not introduce temporary fuel subsidies and will maintain domestic petroleum prices aligned with international market trends.

The move aims to pass on the impact of global price fluctuations to consumers while maintaining fiscal discipline under ongoing economic reforms.

Officials said the government collected approximately Rs3.5 billion in additional petroleum levy over the past month, while petrol consumption rose by nearly 24 per cent during the same period.

At the same time, authorities have pledged targeted relief measures for vulnerable segments. Fertiliser will remain exempt from Federal Excise Duty in the upcoming fiscal year to support farmers.

Govt increases BISP payments

In a parallel step, the government plans to increase payments under the Benazir Income Support Programme (BISP) by Rs5,000 starting January next year.

An additional 200,000 families are expected to be enrolled in the programme by the end of the current fiscal year.

The policy shift reflects a broader strategy to balance fiscal consolidation with social protection as Pakistan navigates external economic pressures.