Pakistan to default if subsidies not abolished till July: Miftah.

ISLAMABAD -- Finance Minister Miftah Ismail said Monday that if the government does not abolish the subsidies on petroleum products, then the country will default.

Speaking during private tv programme, the finance minister said the International Monetary Fund (IMF) has insisted on abolishing the subsidies on petroleum products.

In a bid to bring economic stability and revive the stalled multi-billion-dollar IMF programme, the government had increased the price of petrol by a whopping Rs60 per litre last month.

It was also expected that after the budget, some hurdles would be removed in the IMF programme's revival. But the finance minister last week said the IMF "was still unhappy with the government over the budget" mainly because it did not implement the Personal Income Tax (PIT) measures suggested by it.

Miftah had also said last week that there was no financial emergency in Pakistan after the government took steps to rectify the ongoing economic turmoil and increased the price of petrol.

But in today's interview, the finance minister said if the government does not increase the prices, the IMF will not strike a deal with Pakistan, and if this happens, then the country will be pushed toward "destruction."

'I have told the prime minister that we...