Miftah Ismail, Pakistan’s finance minister, agreed on Sunday to the International Monetary Fund’s (IMF) advice to phase down fuel subsidies.
Pakistan and the IMF agreed to prolong the stalled rescue program for up to a year and increase the loan size to $8 billion as a result of the development.
Pakistani media said that Ismail met with the IMF’s executive directors in Washington to discuss the restoration of the Extended Fund Facility (EFF) program, citing sources.
Ismail hinted at extending the IMF loan and agreed to scale out gasoline and energy subsidies in stages.
The IMF stated that it has no objections to the Income Support Program and that Pakistan might continue to provide subsidies to the poor.
The IMF has also expressed its support for the Sehat Card scheme’s continuation.