Shehbaz Says IMF Raised No Serious Objection to Pakistan's Fuel Subsidy

Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva on the sidelines of the 81st UN General Assembly in New York on September 23, 2026, and said afterwards that the Fund had not raised serious objections to his government's Rs100-per-litre fuel subsidy, The Express Tribune reported.

What each side said

The Prime Minister's Office said the two discussed Pakistan's upcoming IMF programme review. Shehbaz told the Tribune that he had asked the IMF chief where "the poor man would go." The IMF did not comment publicly on the subsidy.

Georgieva's own account was broader. In a post on X, she said she had met Shehbaz to discuss Pakistan's reforms, which she said had helped preserve economic stability, restore confidence and regain market access. "Continuing reforms will help boost economic growth and improve the living standards of the people," she wrote.

Why the subsidy question matters

The relief scheme gives motorcycle, rickshaw and small-car owners Rs100 off every litre of petrol, covered in detail separately. IMF programmes typically discourage broad, untargeted subsidies because they strain the budget, which is why the government describes the scheme as targeted at specific vehicle categories rather than universal. Whether IMF staff treat it the same way the Prime Minister described it in New York is the detail to watch in the review.

What happens next

Formal negotiations for the fourth review of the $7 billion Extended Fund Facility and the third review of the Resilience and Sustainability Facility began on September 28, with about $1.2 billion in combined disbursements at stake if both are completed. A successful review also signals to other lenders and markets that Pakistan is meeting its programme commitments, the same dynamic behind how Pakistan's reserves and rupee have moved.

Build Better Pakistan's Economy Desk is tracking the IMF review and will update this piece once the Fund issues its findings.