“I was not informed,” says the finance minister
ISLAMABAD: Finance Minister Muhammad Aurangzeb has expressed ignorance about the IMF fuel subsidy objection, saying he had not been informed that the Fund wants Pakistan’s fuel support scheme phased out promptly.
The minister made the remarks during a brief interaction with The Express Tribune at the International Poultry Expo 2026. He insisted the targeted subsidy was the way forward and that the scheme would continue to benefit vulnerable segments of society.
Asked about the IMF’s position, Aurangzeb questioned where the media had heard about the objection. When told the information had been officially issued by the IMF and reported by mainstream media, he suggested the Fund might have conveyed its concerns to “the subscriber” but said he had not been informed.
The remarks came despite the IMF publicly calling for the fuel support scheme to be wound down quickly, citing its high cost and broad targeting.
What the IMF fuel subsidy objection says
In an October 7 press release announcing a staff-level agreement on the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility for Pakistan, the IMF asked for the fuel support scheme to be phased out promptly.
Under the heading “Prioritising Social Spending”, the Fund stated that any future fuel support, should oil prices rise unexpectedly, should be limited, time-bound and targeted. It should be delivered through established social assistance programmes and accommodated within the fiscal year 2026-27 budget envelope.
The staff-level agreement paves the way for $1 billion and $210 million in loan disbursements under the two programmes, subject to executive board approval. The deal follows weeks of negotiation as Pakistan seeks to keep its broader economic programme on track.
Ten million beneficiaries and counting
In a later interaction to clarify his remarks, Aurangzeb reiterated that the targeted subsidy scheme had been successful and had benefited around 10.2 million people. He said the prime minister had disclosed a day earlier that around 10 million people had benefited.
The beneficiaries include users of Qingqi rickshaws, other three-wheelers, motorcycles and cars with engines below 800cc. Assuming an average household size of five people, the minister said, the scheme’s benefits could extend to around 50 million people.
Asked why the government had not announced smart lockdowns to conserve fuel stocks and reduce the rising fuel import bill, as it had done previously when domestic fuel prices exceeded Rs400, the minister said targeted subsidies had made such lockdowns unnecessary. The scheme allows deserving segments of society to purchase fuel at subsidised rates.
Subsidies, lockdowns and long marches
The minister also said Pakistan could not afford long marches and sit-ins if it wanted to sustain economic growth of four per cent or above, adding that such disruptions caused daily losses of around Rs120 billion.
He also commented on the poultry sector at the expo. He said livestock accounted for 63 per cent of agricultural GDP and had recorded fairly impressive growth. However, despite Pakistan being the world’s 11th largest poultry producer, its share in global poultry exports remained negligible.
The minister said the poultry sector needed to improve its export potential by addressing logistical constraints, strengthening disease management and reducing input costs. He announced the government would establish a separate administrative vertical for livestock, giving the private sector greater autonomy in decision-making while oversight remained with the Ministry of National Food Security and Research.
When asked about the use of exporters’ and importers’ containers as roadblocks against protests, Aurangzeb questioned whether such actions by protesters were fair in a democracy.
FAQ
What did the IMF ask Pakistan about the fuel subsidy?
In its October 7 press release, the IMF asked Pakistan to phase out the fuel support scheme promptly, citing its high cost and broad targeting. Future fuel support should be limited, time-bound and delivered through established social assistance programmes.
How many people benefit from the fuel subsidy scheme?
Around 10.2 million people, according to the finance minister. Assuming an average household size of five, benefits could extend to roughly 50 million people.
Which vehicles qualify for the subsidised fuel?
Qingqi rickshaws, other three-wheelers, motorcycles and cars with engines below 800cc.
Will the subsidy scheme continue despite the IMF objection?
The finance minister said the targeted subsidy was the way forward and the programme would continue to support vulnerable and deserving segments of society.
