Pakistan confident of defending $1.5 billion fuel subsidy at IMF review

ISLAMABAD (Reuters) – Pakistan is confident it will be able to defend a nearly $1.5 billion fuel and electricity subsidy package during a International Monetary Fund (IMF) programme review that started Friday, the finance ministry said.

Prime Minister Imran Khan this week announced a cut in fuel and electricity prices despite a steep global rise in the cost of oil, pledging to freeze the new rates for four months with the price differential being covered by the government.

“We are ready to address their (IMF) concerns, if any, about the merits of the relief package,” the finance ministry spokesman Muzammil Aslam told Reuters, adding, “We have that fiscal space to fund this money.”