INTERNATIONAL: Hundreds of people took to streets of Pakistan on Friday (June 3) after former Prime Minister Imran Khan called on Pakistanis to protest rising inflation following the government hike in fuel prices.

The country's finance minister said on Thursday (June 2) Pakistan would slash fuel subsidies for a second time in a week in a bid to control the fiscal deficit and secure International Monetary Fund (IMF) bailout money.

Minister Miftah Ismail said petrol and diesel prices for consumers have been increased by 17% at the pumps starting on Friday, up 30 Pakistani rupees each per litre.

Last week, the country raised prices by around 20%.

About 400 protesters gathered in the eastern city of Lahore, about 200 to 250 people in the southern city of Karachi and dozens protested in Islamabad, condemning the rising inflation.

“We strongly condemn it, and we pray to God to get us rid of these rulers,” said one protester in Karachi.

“They (government) have made petrol so costly that it is becoming out of reach of common man. What will people do, commit robbery or suicide?” said protester Madeeha Umair in Lahore.

The price hike has been the main issue between Pakistan and the IMF to reduce the fiscal deficit before the annual budget is presented later this month.

According to a Pakistani source directly involved in talks in Qatar, the IMF and Islamabad had reached a deal to release over $900 million in funds once Pakistan removed the fuel subsidies.

Ismail said on Thursday there now remained a subsidy of about 9 Pakistani rupees per litre.

Ousted Prime Minister Imran Khan had given the subsidy in his last days in power to cool down public sentiment in the face of double-digit inflation, a move the IMF said deviated from the terms of the 2019 deal.

Consumer Price Index inflation rose to 13.8% in May, year-on-year, the highest in two-and-a-half years. The country's central bank said earlier this week it expected inflation to remain elevated in the wake of removing the fuel and power subsidies.