Tuesday, June 25, 2024

IMF Orders Pakistan to Increase Electricity and Gas Prices for Revival of IMF Programme

The International Monetary Fund (IMF) has shared lists of prerequisite actions and told Pakistani authorities in plain words that Islamabad will have to move towards implementing all demands for reviving the stalled Fund program, according to sources.

The IMF has asked Pakistan to take all required actions that could pave the way for striking a staff-level agreement and releasing a $1 billion tranche under the Extended Fund Facility (EFF).

The sources say the IMF has sought a roadmap from Pakistan for the collection of Rs 855 via the petroleum levy till June 30, 2023. The Pakistani government must increase the diesel levy by Rs 15 per liter, bringing it to Rs 50 per liter.

According to the sources, the IMF has also requested the settlement of circular debt in the gas sector in order to restart the stalled loan program, adding that Pakistan must raise gas prices by 74% to repay the debt.

Pakistan has also been directed to take steps to increase tax collection by Rs 300 billion and increase the basic electricity tariff. It has also been learned that the IMF wants Pakistan to end the “artificial ban” on the dollar exchange rate.

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