IMF Says Pakistan Will Scrap Controversial Fuel Subsidy Proposal
- Nation looks to unlock loans that were stalled since August
- Fund continues engagement with Pakistan for loan deal
A worker fills up a motorcycle with fuel at a gas station in Karachi, Pakistan.
Photographer: Asim Hafeez/BloombergThis article is for subscribers only.
The International Monetary Fund said Pakistan will scrap a new fuel subsidy proposal, a decision that potentially clears a hurdle to unlocking a long-delayed $1.1 billion loan disbursement.
Pakistan has committed not to implement a so-called cross-subsidy program in the current fiscal year and beyond, an IMF spokesperson said in a emailed response to questions. The government also won’t introduce new tax exemptions and will “durably allow” a market-based exchange rate for its currency, the IMF said.