Aurangzeb discusses targeted fuel subsidies in meeting with senior IMF official

Published Updated
0
Finance Minister Muhammad Aurangzeb (3rd R) holds a meeting with a delegation from the IMF on the sidelines of the World Bank Group-IMF Annual Meetings 2026 in Bangkok, Thailand on October 14, 2026. — X/@Financegovpk
Finance Minister Muhammad Aurangzeb (3rd R) holds a meeting with a delegation from the IMF on the sidelines of the World Bank Group-IMF Annual Meetings 2026 in Bangkok, Thailand on October 14, 2026. — X/@Financegovpk

Finance Minister Muhammad Aurangzeb met International Monetary Fund (IMF) Deputy Managing Director Nigel Clarke in Bangkok on Wednesday, with their discussion covering targeted fuel subsidies among other matters.

Aurangzeb “outlined targeted fuel subsidies to protect vulnerable groups and preserve social cohesion” during the meeting, a statement issued by the finance ministry said.

The government has already rolled out a fuel subsidy scheme for the users of motorcycles, autos and vehicles of up to 800cc to amid rising global oil prices. Days after its announcement on Sept 13, Prime Minister Shehbaz Sharif directed that motorcycles, rickshaws and Qingqi rickshaws up to 20 years old should also be included in the scheme.

Pakistan also remains engaged with the IMF for a $7 billion Extended Fund Facility (EFF) and $1.4bn Resilience and Sustainability Facility (RSF). The two reached a staff-level agreement after a fourth review under the EFF and a third review under the RSF earlier this month, which qualified Pakistan to draw about $1.2bn from the Fund’s resources.

On Tuesday, the IMF called on countries to offer narrow, targeted subsidies in the wake of the energy crunch caused by the US-Israeli war on Iran.

The finance ministry statement said Aurangzeb and Clarke met on the sidelines of the World Bank Group-IMF Annual Meetings 2026 to discuss Pakistan’s economic progress and reform priorities.

Aurangzeb appreciated the Fund’s partnership and emphasised “strong political ownership and sustained implementation of reforms”, the statement said, adding that he also highlighted Pakistan’s return to international capital markets and robust investor participation.

“He further highlighted stronger reserves, three consecutive years of primary surpluses and a declining debt-to-GDP ratio,” the ministry said.

Moreover, the finance minister “noted Clarke’s emphasis on adequate reserve buffers and stronger revenues to support investment in human capital, infrastructure and public services”.

According to the statement, the discussion also covered sustainable growth, policy consistency and safeguarding health and education spending alongside fiscal discipline.

Aurangzeb discusses fuel reserves with US State Dept

In a separate statement, the ministry said Aurangzeb also held a meeting with Ambassador Hugo Yon from the US State Department to discuss bilateral economic cooperation.

“He reviewed progress towards a trade framework agreement and energy diversification through increased imports from the United States. The finance minister also outlined measures to maintain fuel supplies and support vulnerable consumers,” the statement said.

The discussion also covered anti-money laundering and combating the financing of terrorism arrangements, Financial Action Task Force follow-up and investment financing through the US Development Finance Corporation and Exim Bank, the statement added.

Moreover, Aurangzeb “highlighted Reko Diq, cooperation on critical minerals, project security and opportunities to mobilise private investment”.

Boeing aircraft acquisition and financing, aviation clearances, digital asset regulation and potential remittances and Eurobond tokenisation applications were also discussed during the meeting, the statement said.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Narrative confusion
Updated 14 Oct, 2026

Narrative confusion

The centre must say clearly how long it intends it to last, what it hopes to achieve in that time, and how the province’s elected mandate will be restored.
El Niño’s long reach
14 Oct, 2026

El Niño’s long reach

THE extraordinary El Niño gathering strength in the Pacific could make 2026 the hottest year on record, with 2027...
Deeper poverty
Updated 14 Oct, 2026

Deeper poverty

PAKISTAN’S poverty crisis is far deeper than official indicators suggest. While the government celebrates economic...
Yemen escalation
Updated 13 Oct, 2026

Yemen escalation

Such an agreement can also help bring peace to Saudi Arabia, while ending Yemen’s humanitarian nightmare.
Inequitable taxation
13 Oct, 2026

Inequitable taxation

FINANCE Minister Muhammad Aurangzeb has once more reviewed the latest incentive scheme to bring retailers into the...
Taxila’s hidden past
13 Oct, 2026

Taxila’s hidden past

A HILL dismissed more than a century ago as an unremarkable heap of ruins has yielded one of Taxila’s most...