Aurangzeb discusses targeted fuel subsidies in meeting with senior IMF official

Dawn reported that Finance Minister Muhammad Aurangzeb sat down with IMF Deputy Managing Director Nigel Clarke in Bangkok on Wednesday, with the design of targeted fuel subsidies high on the agenda. According to a finance ministry statement, Aurangzeb presented these subsidies as a way to shield vulnerable households while keeping social harmony intact. The talks took place during the World Bank Group-IMF Annual Meetings 2026.

The government has already launched fuel support for bike, auto and vehicle users up to 800cc, and the prime minister later asked that older motorcycles and rickshaws also be included. A staff-level agreement reached earlier this month, following reviews under both facilities, qualified Pakistan to draw about $1.2bn. Pakistan is still working with the IMF under a $7 billion Extended Fund Facility and a $1.4bn Resilience and Sustainability Facility.

Separately, the finance ministry said Aurangzeb met US State Department Ambassador Hugo Yon and discussed a trade pact, progress on energy diversification via higher imports from the US, and steps to keep fuel supplies flowing. Reko Diq, critical minerals, project security, Boeing aircraft purchases, digital asset rules and Eurobond tokenisation were also raised, the statement added.