Pakistan’s finance minister discusses targeted fuel subsidies with IMF — Dawn
Pakistan’s Finance Minister Muhammad Aurangzeb met in Bangkok, Thailand, with International Monetary Fund Deputy Managing Director Nigel Clarke. Among other things, the sides discussed targeted fuel subsidies to protect vulnerable population groups and preserve social stability, Dawn reports.
Pakistan’s fuel programme
The meeting took place on 14 October on the sidelines of the 2026 Annual Meetings of the World Bank Group and the IMF. According to Pakistan’s Ministry of Finance, Aurangzeb outlined an approach to targeted support for fuel consumers.
Pakistani authorities have already introduced a fuel subsidy programme for users of motorcycles, auto-rickshaws and vehicles with engine capacities of up to 800 cubic centimetres amid rising global oil prices. After the programme was announced, Prime Minister Shehbaz Sharif also ordered the inclusion of motorcycles, rickshaws and Qingqi rickshaws up to 20 years old.
Earlier, the IMF called on states to provide narrowly targeted subsidies amid the energy crisis caused by the US and Israeli war against Iran.
Financing and reforms
At the meeting, Aurangzeb and Clarke also discussed Pakistan’s economic progress and reform priorities. The minister stressed political ownership of reforms and their consistent implementation, and also mentioned the country’s return to international capital markets and active investor participation.
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Pakistan’s Ministry of Finance reported stronger reserves, three consecutive years of primary surpluses, and a reduction in the public debt-to-GDP ratio. Clarke, according to the ministry, stressed the need for adequate reserve buffers and higher revenues for investment in human capital, infrastructure and public services.
Pakistan continues to cooperate with the IMF under a $7 billion Extended Fund Facility and a $1.4 billion Resilience and Sustainability Facility. Earlier, the sides reached a staff-level agreement following the fourth review of the first programme and the third review of the second, qualifying Pakistan to receive about $1.2 billion from the fund’s resources.
Contacts with the US
Separately, Aurangzeb met with Ambassador Hugo Yon of the US Department of State. They discussed bilateral economic cooperation, progress toward a framework trade agreement, diversification of energy supplies through increased imports from the US, and measures to maintain fuel supplies and support vulnerable consumers.
According to the ministry, other topics included mechanisms to counter money laundering and terrorist financing, further steps within the FATF framework, investment financing through the US International Development Finance Corporation and Exim Bank, as well as the Reko Diq project and cooperation on critical minerals.
