ISLAMABAD: Pakistan’s new Finance Minister Miftah Ismail has hinted at increasing petrol and diesel prices in the country after International Monetary Fund (IMF) has agreed to reverse subsidies on fuel products during talks at the Washington-based lender’s annual spring meetings.
Speaking during an event organized by US think tank Atlantic Council, Miftah Ismail said that the IMF program of US$6 Billion has been derailed and they would bring it on track.
“They’ve talked about removing the subsidy on fuel. I agree with them,” Ismail, himself a former International Monetary Fund economist, said at the Atlantic Council.
“We can’t afford to do the subsidies that we’re doing. So, we’re going to have to curtail this,” he said.
He said that former prime minister Imran Khan set a “trap” for his successors through heavy subsidies on fuel.
In 2019, the IMF approved a $6 billion loan for Pakistan but disbursement has been slowed down by concerns about the pace of reforms.
“The only aim of the government is to bring economic and fiscal stability,” he said and added, “Measures will also be taken phase-wise to increase exports of the country.”
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Soon after being appointed as the finance minister, Ismail had said that the subsidy allowed for petrol for the months of May and June would cost Rs96 billion, and the “government cannot bear this burden”.
Addressing the Atlantic Council event, Miftah Ismail highlighted the economic agenda and priorities of the newly-formed government in Pakistan, saying its aim is to bring about economic and fiscal stability leading to recovery and growth.
While achieving that objective, he said the government will ensure that this growth is all-inclusive by taking care of the poor segments of society.