Pakistan FinMin warns of default if fuel subsidies not abolished

Pakistan will default if the government does not abolish the subsidies on petroleum products, Finance Minister Miftah Ismail has said, warning that the cash-strapped country's economy could be in a similar position as that of Sri Lanka if tough decisions were not taken. 

Ismail claimed that the government was still giving Rs 19 subsidy on petrol and Rs 53 subsidy on diesel, adding that Sri Lanka also gave subsidies to its public and it, eventually, defaulted. 

Speaking during Geo News' programme “Capital Talk” on Monday night, Finance Minister Ismail said the International Monetary Fund (IMF) has insisted on abolishing the subsidies on