'Electricity, gas prices to go up if IMF loan program not revived'

ISLAMABAD: State Minister for Finance, Aisha Ghaus Pasha on Monday said electricity and gas prices are likely to go up in Pakistan if the loan program with the International Monetary Fund (IMF) is not revived, ARY News reported. 

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

Talking to newsmen, Aisa Ghaus Pasha said budget details have been shared with the IMF and talks are also underway for the completion of the ninth review.

She said the IMF MD has also assured Pakistan of early completion of the 9th review with Pakistan as the friendly countries have also already assured the fund of external financial support to Pakistan.

Read more: PM Shehbaz optimistic about securing IMF deal this month

In replying to a query, Ms. Pasha said IMF will not object to the tax exemption given by the coalition government in the FY2023-24 budget. “Relaxation in taxes is essential for the recovery of the economy.”

She ruled out the impression of seizing foreign currency accounts amid the economic crunch. “No plans to seize foreign currency accounts in Pakistan.”

Earlier, Prime Minister (PM) Shehbaz Sharif expressed his optimism regarding Pakistan’s chances of striking a deal with the International Monetary Fund (IMF) this month, saying that the government has accepted all the global lender’s conditions and implemented them.