Dawn reported today that International Monetary Fund has warned oil importing countries, including Pakistan, of a price hike in oil.
IMF said that because of increase in global prices of oil the import bill can get 30 percent higher as compared to last year. In its May 2017 Regional Economic Outlook for the Middle East, the Gulf, and North Africa, Afghanistan and Pakistan, IMF said that any further increase can potentially undermine consumption and increase financial risks. It can also worsen external imbalances.
IMF report added that this hike can be offset by higher remittances and other foreign support from oil exporting countries. The report mentioned Pakistan among the countries where reduced oil prices have allowed for more expenditure on infrastructure, education, health care and social services. Pakistan has also been able to reduce its fiscal deficit owing to savings on oil spending.
IMF also said that the oil importing countries should make revenue generation their key