Jakarta, April 18 (NationPress) The International Monetary Fund (IMF) has urged the Philippines to implement a more focused fiscal strategy to tackle its current energy crisis, cautioning that limited budgetary buffers hinder the government's capacity to deliver widespread economic assistance, particularly to the most disadvantaged groups, as reported by local media on Saturday.

As per local media reports, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, stated at a recent press briefing that the rising public debt, now approximately 60% of the nation's gross domestic product, increased from 41.5% prior to the COVID-19 pandemic, has diminished fiscal flexibility.

Srinivasan recommended that the Philippines optimize its fiscal buffers, highlighting the necessity to focus aid on the most at-risk sectors, as reported by Xinhua.

He emphasized the importance for the Philippines and other economies reliant on imports with limited oil and gas reserves to judiciously manage resources in light of global fuel price fluctuations.

In its recent World Economic Outlook, the IMF has revised its growth projection for the Philippines in 2026 to 4.1%, a significant reduction from the 5.6% forecast made in January, reflecting increasing external pressures and domestic limitations.

Additionally, the United States Department of the Treasury has extended a waiver that allows for the delivery and sale of sanctioned Russian oil already on vessels, with the deadline pushed to May 16, as per a document on its official site. This follows the expiration of a previous 30-day waiver on April 11.

The renewed license, issued on Friday (local time), is part of a broader initiative by the administration to stabilize global energy prices, which have surged due to the ongoing US-Israeli conflict with Iran.

This decision is made amid several countries grappling with the repercussions of escalating energy costs and supply interruptions.

At the same time, the waiver continues to enforce stringent restrictions on transactions with specific nations. This development comes shortly after statements by US Treasury Secretary Scott Bessent, indicating that Washington does not plan to maintain such waivers indefinitely amidst rising geopolitical tensions.

Meanwhile, global oil prices experienced a steep decline of approximately 9% on Friday, settling near $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a vital energy transit route worldwide.

However, the ongoing conflict has already triggered what the International Energy Agency described as the most severe disruption to global energy supplies in history.

The conflict, now in its eighth week, has reportedly inflicted damage on over 80 oil and gas facilities across West Asia.