ISLAMABAD: The Pakistan government is confident it can successfully pass a seventh review of the country’s three-year $6 billion IMF programme and defend a nearly $1.5 billion fuel and electricity subsidy package, finance minister Shaukat Tarin was quoted by local media as saying on Wednesday.

Prime Minister Imran Khan has announced a cut in fuel and electricity prices despite a steep global rise in the cost of oil, pledging to freeze the new rates for four months, with the price differential being covered by the government.

The south Asian country had to undertake fiscal tightening measures to pass its last IMF review, which was delayed by months as the government struggled to complete prior actions required by the lender to release $1 billion in February.

“The IMF mission raised concerns over PM’s Relief Package on petrol, diesel and electricity prices as well as on tax amnesty for the industrial sector but we explained them all aspects properly in detail,” Tarin told Pakistan’s The News. “Now the IMF team will come back with a final assessment on Friday [tomorrow] for holding virtual talks.”

He said the seventh review was “almost done” and there was no difference of opinion on macroeconomic figures up until December 2021.

Khan's announcement came as the price of Brent crude oil shot past $100 a barrel in the global market in the aftermath of the Ukraine crisis.

The package has also raised concerns for oil companies operating in Pakistan which have warned of a "catastrophic disruption" in supplies as a result of the revised prices and the delayed release of government funds to bridge the gap between cost and retail prices.

The finance ministry has said the subsidy over the next four months will need between 250 to 300 billion Pakistani rupees.