IMF 'asks' Pakistan to limit fuel subsidies
- By Shoaib Nizami -
- Apr 02, 2026

The International Monetary Fund (IMF) has advised the government of Pakistan against providing general petrol subsidies to the public, ARY News reported on Thursday.
According to sources, the IMF has recommended that any subsidy on petrol should be restricted to low-income groups only. It warned that continuing broad-based subsidies on petroleum products could further strain the country’s economy.
The global lender suggested that instead of reducing petrol prices, the government should increase financial assistance under the Benazir Income Support Programme by Rs5,000.
Sources added that, in line with IMF recommendations, beneficiaries of the Benazir Income Support Programme are expected to receive Rs19,500 from January 2027.
The federal government has assured the IMF of an increase in BISP funding and stipends.
Meanwhile, following negotiations with the IMF, the government has temporarily deferred the imposition of Federal Excise Duty (FED) on fertilisers and agricultural inputs.
Officials believe that direct cash transfers will provide more effective relief to low-income households against rising inflation.
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