ISLAMABAD: Federal Finance Minister Miftah Ismail said Monday that if the government does not abolish the subsidies on petroleum products, then the country will default.
Speaking during a private TV talk show, the minister said the International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products.
The finance minister said if the government does not increase the prices, the IMF will not strike a deal with Pakistan, and if this happens, then the country will be pushed toward “destruction.”
“I have told the prime minister that we have to take tough decisions. The prime minister is unhappy with increasing the prices of petroleum products. Whenever I send a summary in this regard, the ministers curse me,” Miftah lamented.
The finance minister claimed that the government was still giving Rs19 subsidy on petrol and Rs53 subsidy on diesel, adding that Sri Lanka also gave subsidies to its public and it, eventually, defaulted.
“Today, Sari Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people,” the finance minister said as he warned of a similar situation in Pakistan.
Miftah added that the PTI government did not make the decisions it agreed upon with the IMF. “We are in talks with the IMF; the PTI did not strike a good deal with it.”
He said that once the agreement with the IMF is reached and Chinese banks extend their loan facility to Pakistan, the market will regain confidence.
