IMF advances new conditions to cover energy sector losses

ISLAMABAD: A bunch of new conditions of the International Monetary Fund (IMF), has surfaced to cover losses in the energy sector, citing sources ARY News reported on Wednesday.

The IMF has demanded immediately installing professional boards and management in the power distribution companies. It has also demanded posting of professional management in power companies before 30 June 2023.

Moreover, the lender has also recommended use of modern technology in power companies to curtail the line losses. It has demanded to outsource the bill collection mechanism, according to sources.

“Annually 180 billion rupees are being added to the circulatory debt owing to a flawed recovery system,” the IMF said.

The lender has also demanded to do away with Rs. 2.59 per unit special tariff for the power consumers of Azad Kashmir and steps to bring the consumers of the region in parity to others by implementing equal power tariff.

The IMF has also demanded monthly report from the Power Division for monitoring of the circulatory debt, sources added.

Earlier, the federal government had enhanced taxes on cigarettes with immediate effect to collect Rs115 billion out of the planned Rs170 billion mini-budget.

According to the notification issued by FBR, the standard rate of General Sales Tax (GST) has been jacked up from 17 to 18 percent with effect from February 15, 2023. The Federal Excise Duty (FED) on cigarettes has also gone up.

The Federal Board of Revenue (FBR) issued the notification after the cabinet approved the finance bill which would now be presented in parliament on Wednesday (today) for approval.

After President Dr Arif Alvi’s objections, the federal government has decided to pass the Finance Bill from the parliament which is also being termed ‘mini-budget’.

Sources told ARY News that the Finance Bill will be presented before the National Assembly (NA) and the Senate during separate sessions on Wednesday (today).