The Pakistani government is considering removing petroleum product subsidies ahead of IMF discussions.

Shehbaz Sharif-led government expected to scrap petrol subsidies . Fuel subsidy will be scrapped on Sunday ahead of talks with IMF for revival of USD 6 billion loan program .

Islamabad (Pakistan), May 15 : Pakistan's prime minister Shehbaz Sharif-led government is expected to gradually scrape petrol subsidies, causing a drop in petroleum products prices for the next two weeks.According to Geo TV, the Shehbaz government will scrap the fuel subsidy on Sunday ahead of Pakistan's talks with the International Monetary Fund (IMF) for the revival of the USD 6 billion loan program.Khawaja Asif, the Minister of Federal Affairs, along with Prime Minister Shehbaz, met with Nawaz Sharif, the party's president.These discussions focused on identifying strategies to help the country overcome its difficult economic situation.

The government currently provides a Rs 29.60 per litre subsidy on petrol.Following the hike, the national kitty would cost Rs45.14 per day if the petrol prices are not increased, according to sources familiar with the matter.In addition, if the government opts to no longer offer subsidies and withdraws, the petrol price will increase to a smidgeon of Rs 190 litres.In a similar manner, the government will offer a Rs73.04 per litre subsidy on diesel and Rs43.16 on kerosene.

If the prices of diesel and kerosene rise, the government will be able to offer subsidies of Rs 85.85 and Rs 50.44 per litre, respectively, to May 16.Moreover, the government is offering a Rs 64.70 per litre subsidy for light diesel, which will increase to Rs 68 on Monday if the prices are maintained.If the government withdraws all subsidies on light diesel, it will cost Rs 186.31 per litre.The Shehbaz government has been informed of the growing subsidy on petroleum products by the Oil and Gas Regulatory Authority (OGRA).