{
  "id": 13041412,
  "title": "IMF Urges Pakistan to Drop Costly Fuel Subsidies, Aid Only the Needy",
  "url": "https://urgent.news/2026/10/09/imf-urges-pakistan-to-drop-costly-fuel-subsidies-aid-only-the-needy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T05:03:05.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/10/09/imf-tells-pakistan-to-phase-out-broad-fuel-subsidies/"
  },
  "original_language": "en",
  "account": "The International Monetary Fund (IMF) has advised Pakistan to restrict petroleum subsidies to those in genuine need, phase out wasteful fuel support programs, and hasten energy sector reforms to alleviate economic strain. The fund emphasized the importance of a measured fiscal policy to curb inflation, stating that financial support during periods of soaring oil prices should be selective and temporary, rather than perpetuated via extensive fuel subsidies. While Pakistan's economy expanded by 4% between July 2025 and March 2026, growth is expected to decelerate to 3.6% due to the repercussions of the Middle East crisis, according to the statement. Inflation peaked in May 2026, yet remittances from Pakistanis residing abroad aided in keeping the current account deficit in check. The IMF also advocated for improved recovery of overdue payments in the energy sector, reduced gas losses, and steps to diminish production costs. The organization highlighted the necessity of prompt adjustments in energy prices and cost-cutting reforms. The IMF recommended that the State Bank of Pakistan adopt a sufficiently restrictive monetary policy to manage inflation. Furthermore, the fund urged Pakistan to bolster its foreign exchange reserves. The staff-level agreement between Pakistan and the IMF, finalized on October 8, 2026, following the fourth assessment of the $7 billion Extended Fund Facility and the third review of the $1.4 billion Resilience and Sustainability Facility, facilitated an additional $1.2 billion in financing, contingent on approval by the IMF Executive Board. This agreement is contingent on broader structural reforms, encompassing the enhancement of governance, transparency, and operational efficiency of state-owned enterprises (SOEs), progress in privatization, and a reduction in the government's involvement in commercial activities.",
  "summary": "The International Monetary Fund (IMF) has urged Pakistan to limit petroleum subsidies to deserving people, phase out costly fuel support … Read More The post IMF Urges Pakistan to Drop Costly Fuel Subsidies, Aid Only the Needy appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}