WASHINGTON – Pakistan’s new finance minister, Miftah Ismail, has accepted an International Monetary Fund (IMF) recommendation to cut fuel subsidies.
The move, which will push Pakistan’s oil prices to another high, aims to secure a tranche of credit from the global lender, which had expressed concerns when former Prime Minister Imran Khan announced it would not hike petrol prices until June 2022 .
Speaking at an event hosted by the renowned US think tank Atlantic Council in Washington DC, Ismail said he had good discussions with the global lender during its annual spring meeting.
“They talked about removing fuel subsidies. I agree with them,” Ismail said.
“We cannot afford to afford the subsidies that we do. So we have to limit that,” he added.
Ismail, who is also a former IMF economist, accused former Prime Minister Imran Khan of trapping the new government by announcing heavy oil subsidies.
However, the finance minister said some targeted subsidies will continue to help the poor in the face of soaring global inflation.