FinMin unaware of IMF fuel subsidy objection

The Express Tribune reported that Finance Minister Muhammad Aurangzeb said he had no knowledge of the IMF's objection to Pakistan's fuel subsidy scheme. Speaking briefly at the International Poultry Expo 2026, he argued that targeted subsidies are the right approach and that the scheme will keep supporting vulnerable households. He also questioned where the media had obtained the IMF position, before suggesting the Fund may have raised the concerns with others but had not informed him.

The remarks followed the IMF's October 7 press release on a staff-level agreement covering the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility. In that release, the Fund urged a prompt phase-out of the scheme, pointing to its high cost and broad reach. It added that any fresh fuel relief, if oil costs spike suddenly, should be restricted, time-bound and aimed at those in need, channelled through existing social programmes and kept within the 2026-27 budget.

Aurangzeb put the number of beneficiaries at around 10.2 million, saying the scheme covered users of Qingqi rickshaws, other three-wheelers, motorcycles and cars with engines below 800cc. Assuming five people per household, he estimated the benefits could reach about 50 million people. He said targeted subsidies had made smart lockdowns to save fuel unnecessary, and the scheme would keep supporting deserving groups.