Finance Minister Miftah Ismail has warned that Pakistan will default if subsidies on petroleum products are not abolished soon.
Speaking during a talk show, he said that the International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products.
He said if the government does not increase the prices of petroleum products, the IMF will not strike a deal with Pakistan, and if this happens, the country will be pushed towards "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,” he lamented.
He said the government is giving Rs19 subsidy on petrol and Rs53 subsidy on diesel.
“Today, Sri Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people,” he added.
He claimed that the PTI-led 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 further said that once the IMF programme is revived and the Chinese banks extend their loan facility to Pakistan, the market will regain confidence.
Speaking during a talk show, he said that the International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products.
He said if the government does not increase the prices of petroleum products, the IMF will not strike a deal with Pakistan, and if this happens, the country will be pushed towards "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,” he lamented.
He said the government is giving Rs19 subsidy on petrol and Rs53 subsidy on diesel.
“Today, Sri Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people,” he added.
He claimed that the PTI-led 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 further said that once the IMF programme is revived and the Chinese banks extend their loan facility to Pakistan, the market will regain confidence.