Pakistan requires to have Rs1,416 billion in subsidies to retain the cost of POL stable, on a yearly level at the present market costing on international level, hence Islamabad will have to eliminate all the fuel subsidies to maintain a stable budget , as per to the International Monetary Fund (IMF),
The government also needs a yearly subsidy of Rs139 billion for electricity. The IMF showed his concern related to a breakdown of the $6 billion expansion of Fund Facility, (EFFcontinuous )’s conditions of working, which made Islamabad not to “impose or tighten significant bans for balance of payments purposes.”
Throughout the time of programme, According to the standard of performance, Pakistan will not restrict or put on limitations on spending payments and transactions, and not make it difficult for the current foreign transactions , Present or renew multiple currency practices (MCPs) having an aim of helping a versatile market-friendly rate of exchange, eliminating the MCPs causing due to the introduction and/or amendments of the multiple-price foreign exchange auction program working according to the directions of IMF staff, conclude bilateral payment contracts that are not consistent with Article VIII of the IMF Articles of Agreement, and enforcement or enhancement of the import prohibition for the stability of the purposes of payments.
