Finance Minister Miftah Ismail categorically ruled out on Monday an increase in the prices of petroleum products before May 1, stressing also that the priority right now is to revive the International Monetary Fund (IMF) programme, prepare the budget for next year, and stabilise the economy.

Speaking during a Geo News show with journalist Hamid Mir, Ismail said prices of petroleum products are reviewed on the 15th, and 1st of every month.

"There is no chance that we will raise prices before the 1st (of May)," said Ismail. "If prices are raised on the 1st, there are a lot of considerations including the summary of the regulator – OGRA – and the fact that Prime Minister Shehbaz Sharif will ask me, 'what have you done for the poor-income group?'

"I need to make that plan as well, which hasn't been made yet."

Answering a query on the State Bank of Pakistan (Amendment) Act and if it was going to be reversed, Ismail said this is not a priority area for the time being. The SBP (Amendment) Act had caused massive uproar as it was passed during the tenure of the Pakistan Tehreek-i-Insaf (PTI) government, with the then-opposition claiming that authorities in Islamabad were compromising on the country's sovereignty. But with the Pakistan Muslim League (PML-N) now in power, many expect the party to 'reverse' the amendments.

"I am not looking anywhere else other than stabilising the economy. We will look at it afterwards. Right now, there is no intention of reversing the SBP (Amendment) Act."

Ismail's remarks come as Pakistan resumed talks with the IMF over its Extended Fund Facility (EFF) in Washington, where the key takeaway has been Islamabad's acceptance that its fuel subsidy needs to be rolled back. The development has created a sense of discomfort back home, where panic has ensued, and prompted calculations of impending inflationary pressures.

Earlier updates

Ismail had earlier on Monday said the government has sought an increase in the size and duration of the IMF's EFF.

Addressing a press conference in Washington, the minister said he and his team had productive talks with the IMF, World Bank and the International Finance Corporation.

“We have requested the IMF to extend the EFF programme by a year from 3 to 4 years,” said Ismail, adding that his team received a positive response in this regard. “We have also requested the fund to enhance the overall loan size by $2 billion,” he said.

The minister said that he has requested the $900 million tranche be enhanced. The tranche is expected to be released after the successful conclusion of negotiations with the IMF.

Ismail said that the IMF has agreed to send its mission to Pakistan in the middle of the next month for continuation of EFF programme and the incumbent government will fulfill all sovereign commitments made by the previous governments with IMF and regarding CPEC.

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“The Government of Pakistan has never defaulted in the last 70 years and will not default in the future too,” said the finance minister. He said there had been excessive budget deficits which led to rise in debts.

“We will try to reduce the debt to GDP ratio, which will be achieved by increasing the overall GDP,” he said.

Earlier, Nathan Porter, IMF Mission Chief for Pakistan, issued a statement stating the fund "agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review. Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

“The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives."

Ismail also clarified that the current government will not stall initiatives by the previous government including the Ehsaas programme. But he said Pakistan cannot afford to continue subsidy on petroleum products due to its economic situation.