Aurangzeb says IMF fuel subsidy concerns not conveyed to him
Finance Minister Muhammad Aurangzeb said he had not been informed of the IMF's objections to Pakistan's fuel subsidy scheme, telling The Express Tribune at the International Poultry Expo 2026 that targeted subsidy was the way forward and that the scheme would continue to benefit vulnerable segments of society. The IMF has called for the fuel support scheme to be phased out promptly, citing its high cost and broad targeting.
In its October 7 press release announcing a staff-level agreement on the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility for Pakistan, the Fund said any future fuel support, should oil prices rise unexpectedly, should be limited, time-bound and targeted, delivered through established social assistance programmes and accommodated within the fiscal year 2026-27 budget envelope. The points were set out under the heading "Prioritising Social Spending".
Asked about the Fund's position, Aurangzeb questioned where the media had heard about the objection. Told that the information had been issued officially by the IMF and reported by mainstream media, he suggested the Fund might have conveyed its concerns to the subscriber but said he had not been informed by them. In a subsequent interaction to clarify the matter, he said the targeted subsidy scheme had been successful and had benefited around 10.2 million people.
He said the prime minister had disclosed a day earlier that around 10 million people had benefited from the scheme, including users of Qingqi rickshaws, other three-wheelers, motorcycles and cars with engines below 800cc. Assuming an average household size of five people, he said, the scheme's benefits could extend to around 50 million people, adding that the programme would continue to support vulnerable and deserving segments of society. Asked why the government had not announced smart lockdowns to conserve fuel stocks and reduce the rising fuel import bill, as it had done previously when domestic fuel prices exceeded Rs400, he said targeted subsidies had made such lockdowns unnecessary by allowing deserving segments of society to purchase fuel at subsidised rates.
Aurangzeb also said Pakistan could not afford long marches and sit-ins if it wanted to sustain economic growth of 4% or above, adding that such disruptions caused daily losses of around Rs120 billion. He appreciated the organisers of Poultry Expo 2026 for bringing together a large number of local and foreign businesses. He said the livestock sector accounted for 63% of agricultural GDP and had recorded fairly impressive growth, though Pakistan's share in global poultry exports remained negligible despite being the world's 11th largest poultry producer. He said the poultry sector needed to improve its export potential by addressing logistical constraints, strengthening disease management and reducing input costs, and that the government had decided to establish a separate administrative vertical for livestock, giving the private sector greater autonomy in decision-making while oversight remained with the Ministry of National Food Security and Research.
