Aurangzeb discusses targeted fuel subsidies in meeting with senior IMF official

Aurangzeb discusses targeted fuel subsidies in session with senior IMF official.

Key points

• News Desk Published October 14, 2026 Updated October 14, 2026 08: 40pm.
• Finance Minister Muhammad Aurangzeb met International Monetary Fund (IMF) Deputy Managing Director Nigel Clarke in Bangkok on Wednesday, with their discussion covering targeted fuel subsidies among other matters.
• Pakistan additionally remains engaged with the IMF for a $7 billion Extended Fund Facility (EFF) and $1.4bn Resilience and Sustainability Facility (RSF).
• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• In a separate statement, the ministry remarked Aurangzeb additionally held a session with Ambassador Hugo Yon from the US State Department to discuss bilateral economic cooperation.

News Desk Published October 14, 2026 Updated October 14, 2026 08: 40pm. Join our Whatsapp Channel.

Aurangzeb "outlined targeted fuel subsidies to protect vulnerable groups and preserve social cohesion" during the session, a statement issued by the finance ministry stated.

Meanwhile, the administration has already rolled out a fuel subsidy scheme for the users of motorcycles, autos and vehicles of up to 800cc to against the backdrop of rising global oil rates. Days after its announcement on Sept 13, Prime Minister Shehbaz Sharif directed that motorcycles, rickshaws and Qingqi rickshaws up to 20 years old should additionally be included in the scheme.

Pakistan additionally remains engaged with the IMF for a $7 billion Extended Fund Facility (EFF) and $1.4bn Resilience and Sustainability Facility (RSF). The two reached a staff-level agreement after a fourth review under the EFF and a third review under the RSF earlier this month. It qualified Pakistan to draw regarding $1.2bn from the Fund's resources.

On Tuesday, the IMF called on countries to offer narrow, targeted subsidies after the energy crunch caused by the US-Israeli war on Iran.

In practice, the finance ministry statement remarked Aurangzeb and Clarke met on the sidelines of the World Bank Group-IMF Annual Meetings 2026 to discuss Pakistan's economic progress and reform priorities.

Aurangzeb appreciated the Fund's partnership and emphasised "strong political ownership and sustained implementation of reforms", the statement remarked, adding that he additionally highlighted Pakistan's return to international capital markets and robust investor participation.

"He further highlighted stronger reserves, three consecutive years of primary surpluses and a declining debt-to-GDP ratio, " the ministry remarked.

Moreover, the finance minister "noted Clarke's emphasis on adequate reserve buffers and stronger revenues to support investment in human capital, infrastructure and public services".

According to the statement, the discussion additionally covered sustainable expansion, policy consistency and safeguarding health and education spending alongside fiscal discipline. Aurangzeb discusses fuel reserves with US State Dept.

"He reviewed progress towards a trade framework agreement and energy diversification through rose imports from the United States. The finance minister additionally outlined measures to maintain fuel supplies and backing vulnerable consumers, " the statement noted.

Notably, the discussion additionally covered anti-money laundering and combating the financing of terrorism arrangements, Financial Action Task Force follow-up and investment financing through the US Development Finance Corporation and Exim Bank, the statement went on.

Moreover, Aurangzeb "highlighted Reko Diq, cooperation on critical minerals, project security and opportunities to mobilise private investment".

Boeing aircraft acquisition and financing, aviation clearances, digital asset regulation and potential remittances and Eurobond tokenisation applications were additionally discussed during the gathering, the statement noted.

Taken together, the developments around aurangzeb discusses targeted fuel subsidies in meeting with senior IMF official point to a situation that is still moving, and the coming days should bring more clarity.