The IMF urged Pakistan to limit fuel subsidies to deserving people and phase out broad fuel support.

The IMF has urged Pakistan to limit petroleum subsidies to deserving people and phase out costly fuel support. The effect on listed energy shares may depend on how any subsidy changes are designed and implemented.

Possible impact on PSX shares

• PSO Pakistan State Oil Company Limited◆ Mixed

  Less broad fuel subsidy spending could ease pressure on government finances and receivables, which may help PSO's cash flow. Weaker fuel demand from higher pump prices could be a risk.

  Price when this was written: Rs 360.50 · Live price, chart and results

• APL Attock Petroleum Limited◆ Mixed

  APL sells fuel through retail outlets, so targeted subsidies could mean less price distortion. If pump prices rise, volumes may soften, so the effect is likely mixed.

  Price when this was written: Rs 576.42 · Live price, chart and results

• SHEL Shell Pakistan Limited◆ Mixed

  Shell Pakistan sells fuel in the retail market, so phasing out broad subsidies could mean cleaner pricing. Possible demand pressure from higher prices may offset this.

  Price when this was written: Rs 185.01 · Live price, chart and results

• OGDC Oil & Gas Development Company Limited◆ Mixed

  Exploration firms earn from crude and gas output, not retail fuel. Less subsidy burden could ease fiscal strain and circular debt, though the direct earnings link is limited.

  Price when this was written: Rs 309.90 · Live price, chart and results

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ProPakistani: IMF Tells Pakistan to Phase Out Broad Fuel Subsidies