WASHINGTON/ISLAMABAD: On Sunday, the finance ministry nodded to the International Monetary Fund (IMF) to reduce the subsidies on petroleum products.
Finance Minister Miftah Ismail and executive directors of IMF met to discuss the Extended Fund Facility (EFF) programme’s revival. Both entities agreed to carry forward the agreement. Miftah agreed to the IMF’s demand of curbing the subsidies on the petroleum products applied by the previous government.
Meanwhile, sources and media reports claim that IMF and Pakistan have agreed to extend the programme after the meeting between Antoinette Sayeh, Deputy Managing Director IMF, and Miftah. Under the extension, the bailout programme will continue for one year, and the loan size will increase by $2 billion to $8 billion.
Regarding subsidies for the marginalised sections, IMF showed no reservations about continuing the Sehat Card and the Income Support Programme.