However, while talks with the IMF are ongoing, Finance Minister Miftah Ismail has indicated the disastrous fuel subsidies instituted by the outgoing PTI government will not be rolled back. Negotiations for restarting the Fund’s bailout programme are underway in Doha, and the fuel subsidies were widely publicised as a key concern raised by the IMF, even during the previous government’s reign. The fuel subsidies are costing the state as much as Rs40 billion a fortnight. There are precedents for fuel subsidies in other countries; Germany has provided tax cuts on petrol and other fuel products. Even if the IMF were to agree to this problematic subsidy, the government itself should reconsider.

Source: The Nation May 24, 2022 17:52 UTC