OREANDA-NEWS Pakistan has removed obstacles to the resumption of the International Monetary Fund's financial assistance program by canceling subsidies on petroleum products, the Dawn newspaper said, according to Gazeta.ru.

Minister of Finance and Revenues of the Islamic Republic Miftah Ismail stated that this step was inevitable due to the decision of the previous government to freeze fuel prices and the current situation in the world market of petroleum products.

The government has also decided to cancel radical tax breaks for wage earners in the proposed 2022-2023 federal budget, sources said. The revised tax slabs and other proposals have been submitted to the IMF, one said.

A fund representative in Islamabad also confirmed that they were in talks with the authorities "to get more clarity on some of the revenue and expenditure items".

Earlier, the IMF refused to renew cash to Pakistan under expanded financing until the authorities removed fuel and electricity subsidies.