PAS wants the government explain how it intends to pay the US$6.5 billion if 1MDB and the Ministry of Finance Incorporated fail in the international arbitration case brought against them by Abu Dhabi's International Petroleum Investment Company.

"Will the rakyat be slaughtered through tax hikes, introduction of new taxes, goods and services tax on petrol purchase and highway tolls? Tolls are already expected to rise after Hari Raya," PAS deputy president Tuan Ibrahim Tuan Man said in a statement today.

IPIC filed a case against 1MDB at the International Arbitration Court in London seeking US$6.5 billion, after it said it never received the US$3.5 billion from 1MDB as payment for guaranteeing 1MDB bonds.

1MDB said it made the payment to a British Virgin Island-registered firm which bears an identical name as IPIC subsidiary Aabar Investments PJS.

IPIC said the BVI firm is not an IPIC subsidiary.

1MDB said it transferred the funds to Aabar BVI after being told by then IPIC managing director Khadem al Qubaisi and Aabar chairperson Mohamed Al Husseiny that the BVI firm is an IPIC subsidiary.

Both Khadem and Mohamed are alleged to have set up Aabar BVI in March 2012, two months before it received US$576.94 million from 1MDB as a security deposit.

According to the Wall Street Journal, some of the funds transferred to Aabar BVI paid for the blockbuster film 'The Wolf of Wall Street'.

This was through a loan made to Hollywood production house Red Granite Pictures owned by Prime Minister Najib Abdul Razak's stepson Riza Aziz.

Red Granite says its sources of funding are legitimate and is cooperating with investigations.