Pakistan to phase out fuel subsidies
Pakistan's government plans to phase out politically-sensitive fuel subsidies during the new financial year that starts on Tuesday as it tries to bring a ballooning budget deficit under control, according to senior Pakistani officials. The government spent $2.4bn during the fiscal year that ended on Monday to subsidise domestic fuel prices and protect consumers from a sharp rise in global oil prices. But this has resulted in a sharp increase in the budget deficit, which is expected to reach about 6.5 per cent of gross domestic product, leading to a rethink by government ministers.