By Asif Shahzad

ISLAMABAD (Reuters). – On Sunday, Shaukat Tarin, the Finance Minister of Pakistan said that Pakistan had been asked by The International Money Fund (IMF), to provide details on how they would pay for the $1.5 Billion subsidy package announced in Imran Khan’s Prime Ministership.

There are no problems. “We have provided them with details about where the funds will come from,” Tarin stated. Tarin also said that the IMF requested details on the sources of funding the subsidy for fuel and electricity. Pakistan is currently storing these resources until it releases its new budget.

Tarin stated that he would have one last meeting with the lender Tuesday to review the sixth IMF Review of the Pakistani rescue plan worth $6 billion.

IMF demanded to see agreements on dividends from State Owned Enterprises, (SOEs), as well details about spare funds that will be received by the central government from provinces.

Tarin stated, “We’ve done our research.”

According to him, some subsidy money will also come out of above-target revenues Pakistan is receiving this fiscal year.

Tarin earlier this month stated that revenues would reach 6.1 trillion Pakistani dollars ($34.2billion), as against a target figure of 5.8 billion rupees.

Khan had faced a no confidence motion by the opposition to bring him out of office. Khan announced that petrol and electricity would be reduced despite an increase in global prices.

Oil market

South Asia’s country needed to implement fiscal tightening measures in order to pass its IMF last review. The delay was caused by the failure of the government, which had failed to finish prior actions that were required by the lender to release $1 million in February.

(Additional Reporting by Syed Raza Hasan; Editing by Muralikumar Anantharaman & Shri Navaratnam)