Pakistan: IMF to consider petrol, gas, electricity subsidies on arrival

A special delegation from the International Monetary Fund is set to arrive in Pakistan to discuss budget recommendations alongside subsidies on petroleum, electricity and gas with the federal government.

This comes after Finance Minister Miftah Ismail held a meeting with the executive directors of the IMF in Washington for the revival of the Extended Fund Facility programme last month and agreed uponrecommendations to reduce fuel subsidies phase-wise.

The global financial institution’s delegation will stay in Pakistan for 10 days to hold talks with the Pakistani officials, Ary News reported.

Apart from examining the federal government’s plan regarding subsidies on petroleum products, electricity and gas, the IMF delegation will also review the taxes and duties collections in the next round of talks.

They will hold talks about ending additional subsidies worth Rs500 billion, sources added.

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In fact, the finance minister previously emphasised that the government would make efforts to restore the Extended Fund Facility programme with International Monetary Fund.

“We will restore the programme. If the government had to tighten its belt, it will do so,” he said, adding that no extra burden would be put on people.

Pakistan is already grappling with a massive rise in foreign debt, and its economy is slumping due to low investment, low exports, and a low productivity growth cycle.

• Pakistan