Finance Minister Muhammad Aurangzeb discussed targeted fuel subsidies aimed at protecting vulnerable communities and maintaining social stability during a meeting with a senior International Monetary Fund (IMF) official, the Finance Ministry said.
Aurangzeb outlined the government’s plans during a meeting with the IMF official on the sidelines of the World Bank Group-IMF Annual Meetings 2026. The discussions focused on Pakistan’s economic progress, ongoing reforms and policy priorities.
The government has already introduced a fuel subsidy scheme for motorcycles, rickshaws and vehicles with engine capacities of up to 800cc amid rising international oil prices. Prime Minister Shehbaz Sharif subsequently directed that motorcycles, rickshaws and Qingqi rickshaws up to 20 years old also be included in the programme.
Pakistan remains engaged with the IMF under a $7 billion Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF). Earlier this month, the two sides reached a staff-level agreement following the fourth review of the EFF and the third review of the RSF, qualifying Pakistan to receive approximately $1.2 billion in financing.
On Tuesday, the IMF urged countries to introduce limited and targeted subsidies to address the energy crisis triggered by the US-Israeli war on Iran.
According to the Finance Ministry, Aurangzeb appreciated the IMF’s continued partnership with Pakistan and stressed the importance of strong political commitment and sustained implementation of economic reforms. He also highlighted the country’s return to international capital markets and strong investor participation.
The finance minister cited improved foreign exchange reserves, three consecutive years of primary budget surpluses and a declining debt-to-GDP ratio as signs of economic progress.
He also acknowledged the IMF’s emphasis on maintaining adequate reserve buffers and increasing government revenues to support investment in human capital, infrastructure and public services.
The discussions further covered sustainable economic growth, policy consistency and the need to protect spending on health and education while maintaining fiscal discipline.
In a separate meeting, Aurangzeb held discussions with US State Department Ambassador Hugo Yon on strengthening bilateral economic cooperation.
The Finance Ministry said the two sides reviewed progress towards a trade framework agreement and discussed diversifying energy imports by increasing purchases from the United States. Aurangzeb also outlined measures to ensure fuel availability and provide relief to vulnerable consumers.
Other topics included anti-money laundering measures, efforts to combat the financing of terrorism, follow-up on Financial Action Task Force requirements and investment financing opportunities through the US Development Finance Corporation and Export-Import Bank.
The finance minister also highlighted the Reko Diq project, cooperation in critical minerals, project security and opportunities to attract private investment.
Discussions additionally covered Boeing aircraft acquisition and financing, aviation clearances, digital asset regulation, and potential applications of tokenisation for remittances and Eurobond-related transactions, the ministry said.
