Islamabad : Exactly half way in talks here, International Monetary Fund (IMF) and Pakistan authorities have been facing deadlock like situation as both differ over fuel subsidy and writing off of the gas sector receivables amounting to Rs 1.4 trillion.
IMF wants of the government in Islamabad to rollback its decision of providing subsidy on fuel to off set killing impact of rising fuel prices on much needy section of Pakistani society.
Prime minister , Shahbaz Sharif , had announced relief as subsidy on fuel for lower income group of the society using bikes , cars upto 800 CC , Rickshaws and other small vehicles. IMF questioned the authorities for providing relief to lower income group on fuel prices and demanded end to the scheme immediately.
The fund team also disagreed with Pakistani officials over the proposed writing off of gas sector receivables amounting to Rs 1.4 trillions.
IMF said in its update on the ongoing talks with Pakistani officials “Pakistan and the International Monetary Fund are currently engaged in discussions for the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) and related climate program evaluations. Current Program Status”. It further said in the case of loan agreement said “A 37-month, $7 billion Extended Fund Facility alongside a Resilience and Sustainability Facility (RSF).
• Recent Progress”:
Previous reviews successfully disbursed funding tranches, supporting a stabilization of foreign exchange reserves and a primary fiscal surplus.
• Current Discussions: Ongoing talks have faced minor delays and differences regarding specific fiscal measures, notably a government fuel compensation scheme and gas-sector receivables.
Economic Indicators (2026 Projections)
• Real GDP Growth: Projected at around 3.6%.
• Inflation Rate: Recorded around 10.3% as of September 2026, with annual averages expected near 7.2% to 11.5% end-of-period.
• Key Demands: Continued broadening of the tax base, structural power sector adjustments, and oversight of state-owned enterprises
