# Aurangzeb tells IMF's Nigel Clarke Pakistan wants fuel subsidies only for the vulnerable

Source: Searchable (https://searchable.pk/news/economy/aurangzeb-tells-imfs-nigel-clarke-pakistan-wants-fuel-subsidies-only-for-the)
Type: News article
Author: Searchable Editorial
Published: 14 Oct 2026
Updated: 14 Oct 2026
Retrieved: 15 Oct 2026

> In Bangkok, the finance minister pitched targeted fuel relief to the IMF's deputy chief, in line with the Fund's call this week for narrow subsidies. Here is where the $7bn programme and the bike and 800cc scheme stand.

Finance Minister Muhammad Aurangzeb told the IMF's Deputy Managing Director Nigel Clarke in Bangkok on Wednesday, 14 October, that Pakistan wants fuel subsidies aimed only at vulnerable groups, the Finance Ministry said in a statement reported by Dawn. The meeting took place on the sidelines of the World Bank Group and IMF Annual Meetings 2026.

According to the ministry, Aurangzeb "outlined targeted fuel subsidies to protect vulnerable groups and preserve social cohesion". It is the clearest sign yet of how Islamabad wants to handle petrol relief while it stays inside its IMF programme.

## The subsidy that already exists

The government announced a fuel subsidy scheme on 13 September for owners of motorcycles, rickshaws and cars of up to 800cc, as global oil prices climbed. Days later Prime Minister Shehbaz Sharif ordered that motorcycles, rickshaws and Qingqi rickshaws up to 20 years old also be covered, Dawn reported.

The IMF said on Tuesday that countries should keep subsidies narrow and targeted in response to the energy shock caused by the US-Israeli war on Iran, so Aurangzeb's pitch matches the Fund's own line.

## Where the IMF programme stands

- Pakistan is in a $7 billion Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF).
- Staff-level agreement on the fourth EFF review and third RSF review was reached earlier this month, opening the way to about $1.2 billion once the IMF board signs off. Our earlier report covers [what that tranche means](/news/economy/imf-review-talks-pakistan-1-2-billion-tranche).

The ministry said Aurangzeb pointed to stronger reserves, three straight years of primary surpluses, a falling debt-to-GDP ratio and Pakistan's return to international capital markets. Clarke, in the ministry's account, stressed adequate reserve buffers and stronger revenue to pay for health, education and infrastructure.

## Meeting with the US State Department

In a separate meeting, Aurangzeb met Ambassador Hugo Yon of the US State Department. The ministry said they reviewed progress on a trade framework agreement, more energy imports from the United States, measures to keep fuel supplies going, anti-money laundering and FATF follow-up, and financing through the US Development Finance Corporation and Exim Bank. Reko Diq and critical minerals also came up.

## What it means for you

Nothing changes at the pump from this meeting alone. Petrol and diesel prices are still set in the fortnightly review, and the next one is due on 16 October. Track the PSO Karachi ex-depot price on our [petrol price page](/data/petrol-price) and the [diesel price page](/data/diesel-price), and see what your monthly fuel bill comes to with the [fuel cost calculator](/tools/cars/fuel-cost-calculator).

If you own a motorcycle, rickshaw or car of up to 800cc, the existing targeted scheme is the one that applies to you. Aurangzeb is in Bangkok until 18 October, with more meetings planned, as we reported [before he left](/news/economy/aurangzeb-heads-to-bangkok-for-imf-and-world-bank-annual-meetings-12-to-18).

## Frequently asked questions

**Who gets Pakistan's fuel subsidy?**

The scheme announced on 13 September 2026 covers motorcycles, rickshaws and cars of up to 800cc, and was later widened to motorcycles, rickshaws and Qingqi rickshaws up to 20 years old, according to Dawn.

## Sources

- Aurangzeb discusses targeted fuel subsidies in meeting with senior IMF official (Dawn): https://www.dawn.com/news/2037132/aurangzeb-discusses-targeted-fuel-subsidies-in-meeting-with-senior-imf-official

How to cite: "Aurangzeb tells IMF's Nigel Clarke Pakistan wants fuel subsidies only for the vulnerable", Searchable, 14 Oct 2026, https://searchable.pk/news/economy/aurangzeb-tells-imfs-nigel-clarke-pakistan-wants-fuel-subsidies-only-for-the