Sunday, April 14, 2024

Govt Secures $500m to Fulfil IMF Conditions

The government has decided to enforce the withdrawal of corporate tax exemptions and put in place a mechanism for automatic electricity power tariff increases of about Rs5.36 per unit (34%) over the next 27 months via presidential ordinances, in a serious move to meet the IMF conditions for ensuring release of the $500 million tranche.

The IMF’s executive board is slated to meet on March 24. The board can only approve the tranche if Islamabad implements the laws by the agreed-upon deadline, which is currently only possible through ordinances.

The urgent promulgation of an ordinance for automatic electricity power tariff increases was deemed so important that a bill was already approved by the National Assembly’s Standing Committee on Power on March 11 and is now awaiting formal passage by the National Assembly.

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