Skip to content
Search

Latest Stories

Pakistan finance minister warns of default if fuel subsidies not abolished

The prime minister is unhappy with increasing the prices of petroleum products…,â€� Ismail lamented

Pakistan finance minister warns of default if fuel subsidies not abolished

PAKISTAN will default if the government does not abolish the subsidies on petroleum products, finance minister Miftah Ismail has said, warning that the cash-strapped country's economy could be in a similar position as that of Sri Lanka if tough decisions were not taken.

Ismail claimed that the government was still giving Pakistani Rupee 19 (4 pence) subsidy on petrol and Pakistani Rupee 53 (20 pence) subsidy on diesel, adding that Sri Lanka also gave subsidies to its public and it defaulted.


Speaking during Geo News programme Capital Talk on Monday (13) night, Ismail said the International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products. The minister said if the price of petrol and electricity is not increased, then the country will default.

“I have told the Prime Minister that we have to take tough decisions. The prime minister is unhappy with increasing the prices of petroleum products...,” Ismail lamented.

“Today, Sri Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people,” the minister said as he warned of a similar situation in Pakistan.

In a bid to bring economic stability and revive the stalled multi-billion-dollar IMF programme, the government had increased the price of petrol by a whopping Pakistani Rupee 60 (24 pence) per litre last month.

It was also expected that after the budget, some hurdles would be removed in the IMF programme’s revival. But the Finance Minister last week said the IMF "was still unhappy with the government over the budget" mainly because it did not implement the Personal Income Tax (PIT) measures suggested by it.

Last week, Ismail said that there was no financial emergency in Pakistan after the government took steps to rectify the ongoing economic turmoil and increased the price of petrol.

But in the latest interview, he said if the government does not increase the prices, the IMF will not strike a deal with Pakistan, and if this happens, then the country will be pushed toward "destruction."

The minister added that the previous Imran Khan government did not make the decisions it agreed upon with the IMF.

“We are in talks with the IMF; the previous government did not strike a good deal with it.” He said that once the agreement with the IMF is reached and Chinese banks extend their loan facility to Pakistan, the market will regain confidence.

He said that the government was trying hard to control inflation and it will be overcome in two to three months. “It was the responsibility of the government to put the country’s economy on the right track,” he was quoted as saying by the Geo News. Sri Lanka is currently facing its worst economic crisis since independence from Britain in 1948.

The economic crisis has prompted an acute shortage of essential items such as food, medicine, cooking gas and other fuel, toilet paper, and even matches, with Sri Lankans being forced to wait in lines lasting hours outside stores to buy fuel and cooking gas.

(PTI)

More For You

uk-railways-iStock

The package includes £415 million to upgrade the rail line between Manchester, Huddersfield, Leeds, and York, a route affected by delays and disruptions. (Representational image: iStock)

iStock

Government announces £1.7 bn transport investment for the North

THE GOVERNMENT has announced a £1.7 billion investment to improve transport infrastructure across the North, focusing on buses, roads, and rail.

The funding aims to upgrade key routes and improve connectivity across the region.

Keep ReadingShow less
Keir-Starmer-Getty

Keir Starmer’s communications chief has resigned after nine months in Downing Street. (Photo: Getty Images)

Getty Images

Starmer’s communications chief Matthew Doyle resigns after nine months

KEIR STARMER’s communications chief, Matthew Doyle, has resigned after nine months in Downing Street. Doyle, a Labour veteran who previously worked for Tony Blair, joined Starmer’s team as communications director four years ago when the party was in opposition.

His departure follows that of Sue Gray, Starmer’s former chief of staff, who left in the autumn. Doyle’s exit is expected to lead to the promotions of James Lyons to director of communications (strategy) and Steph Driver to director of communications (delivery), according to the BBC.

Keep ReadingShow less
Lakshmi-Mittal-Getty

Mittal, who built his steel business over five decades, moved to the UK in 1995. (Photo: Getty Images)

Getty Images

Lakshmi Mittal may leave UK after non-dom tax abolition: report

STEEL tycoon Lakshmi Mittal is considering leaving the UK following the government’s decision to abolish the non-domiciled tax status. The move would make him one of the most prominent entrepreneurs to leave due to the tax reform.

Mittal, who has lived in the UK for three decades, has informed associates that his departure is likely due to Labour’s decision to end the non-dom regime, which allowed certain residents to avoid paying UK tax on foreign income.

Keep ReadingShow less
King Charles

The palace said in a statement that after receiving scheduled treatment in the morning, the king had 'temporary side effects that required a short period of observation in hospital.' (Photo: Getty Images)

Getty Images

King Charles cancels engagements after cancer treatment side effects

KING CHARLES has postponed his engagements for Thursday and Friday after experiencing side effects from his ongoing cancer treatment, Buckingham Palace announced.

The palace said in a statement that after receiving scheduled treatment in the morning, the king had "temporary side effects that required a short period of observation in hospital."

Keep ReadingShow less
Salman Rushdie to release first major work since stabbing
Rushdie was stabbed about 15 times: in the head, neck, torso and left hand, blinding his right eye and damaging his liver and intestines. (Photo: Getty Images)

Salman Rushdie to release first major work since stabbing

BRITISH-AMERICAN novelist Salman Rushdie will publish his first major work of fiction since the brutal stabbing that blinded him in one eye, his publisher said on Thursday (27).

The Eleventh Hour, is a collection of short stories examining themes and places of interest to Rushdie who narrowly escaped death during the 2022 attack. It will be released on November 4, 2025.

Keep ReadingShow less