Pakistan hiked fuel prices by 29% in an effort to control the fiscal deficit and reduce fuel subsidies to be able to secure an IMF package. Since May, the government has increased fuel prices three times including the latest one where petrol prices rose by PKR 24/litre ($0.12) and high-speed diesel (HSD) by PKR 59.16/litre ($0.29). Finance Minister Miftah Ismail said, “The prices of all products had now been brought to their purchase price and the element of subsidy or price differential claim had been eliminated. There is no more government loss on the sale of petroleum products, hoping to conclude an agreement with the IMF for reviving loan support”. These measures come just days after Pakistan’s finance minister warned of a possible default if its fuel subsidies did not get abolished. They also come after Pakistan announced its new budget goals to be able to secure the IMF funding.

Pakistan’s dollar bonds were trading lower with its 7.875% 2036s down over 0.34 points to 60.97, yielding 14.49%.

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