Pak PM says hiking fuel prices 'inevitable' to save country from bankruptcy
Pakistan's new government, which took charge in April, had been reluctant to remove the fuel price caps, fearing political consequences with elections expected within 16 months
Pakistan Prime Minister Shehbaz Sharif said on Friday (27 May) that hiking fuel prices was "inevitable" in order to protect his country from bankruptcy.
Making a statement in Islamabad, Sharif said the decision was taken as the country is witnessing "a difficult economic situation."
Late on Thursday (May 26), the government announced it would hike fuel prices after an agreement with the IMF that included an end to fuel subsidies, allowing the resumption of aid from a $6 billion package signed with the IMF in 2019.
Keep updated, follow The Business Standard's Google news channel
Pakistan's new government, which took charge in April, had been reluctant to remove the fuel price caps, fearing political consequences with elections expected within 16 months.
Former Prime Minister Imran Khan, ousted from government last month following accusations that he mishandled the economy, criticised the hike, which he called the single largest in Pakistan's history.
Khan implemented the fuel subsidy in his last days in power to soothe public sentiment in the face of double-digit inflation, but the IMF said it deviated from the terms of the 2019 deal.
