Pakistan’s new government may have to cut fuel and power subsidies

Officials said Pakistan’s new administration is debating whether to cut fuel and power subsidies in the country’s stalling economy, as the industry regulator recommended a massive boost to keep up with global costs.

Despite skyrocketing worldwide costs, former Prime Minister Imran Khan, who was ousted in a confidence vote earlier this week, proposed a drop in petrol and energy tariffs in February in an attempt to regain popular support.

However, the rescue package, worth 373 billion Pakistani rupees ($2.06 billion), has stretched government funds to the point that they can no longer be sustained, according to the finance ministry’s top civil servant. It has also put an ongoing IMF bailout package in jeopardy.