Jakarta: The International Monetary Fund (IMF) has called on the Philippines to adopt a more targeted fiscal response to its ongoing energy crisis, warning that limited budget buffers constrain the government’s ability to provide broad economic support, especially to the vulnerable sectors, local media reported on Saturday.
According to local media reports on Saturday, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, said at a press conference recently that rising public debt, now around 60 per cent of gross domestic product, up from 41.5 per cent before the COVID-19 pandemic, has reduced fiscal flexibility.
Srinivasan suggested that the Philippines should use the fiscal buffers efficiently, emphasising the need to prioritise aid for the most vulnerable sectors, reports Xinhua news agency.
He stressed the need for the Philippines and other import-dependent economies with limited oil and gas reserves to carefully manage resources amid global fuel volatility.
In its latest World Economic Outlook, the IMF downgraded its 2026 growth forecast for the Philippines to 4.1 per cent, sharply lower than the 5.6 per cent projection issued in January, reflecting mounting external pressures and domestic constraints.
Meanwhile, the United States Department of the Treasury has extended a waiver permitting the delivery and sale of sanctioned Russian oil already loaded onto vessels, pushing the deadline to May 16, according to a document released on its official website.
The earlier 30-day waiver had expired on April 11.
The renewed license, issued on Friday (local time), is part of the administration’s broader effort to stabilise global energy prices, which have surged amid the ongoing US-Israeli conflict with Iran.
The decision comes against the backdrop of several countries facing problems with the impact of rising energy costs and supply disruptions.
At the same time, the waiver continues to impose strict restrictions on dealings involving certain countries.
The move comes shortly after remarks by US Treasury Secretary Scott Bessent, who had indicated that Washington does not intend to continue such waivers indefinitely amid rising geopolitical tensions.
Meanwhile, global oil prices saw a sharp decline of around 9 per cent on Friday, settling near $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a key global energy transit route.
However, the broader conflict has already triggered what the International Energy Agency described as the worst disruption to global energy supplies in history.
The war, which entered its eighth week on Saturday, has reportedly damaged more than 80 oil and gas facilities across West Asia.
(IANS)
