IMF 'appreciates' Pakistan's decision to hike gas prices

ISLAMABAD: The International Monetary Fund (IMF) on Wednesday appreciated Pakistan’s tough economic decisions and efforts regarding hike in gas prices, ARY News reported citing sources.

According to sources, Pakistan and the International Monetary Fund held virtual talks on the efforts made in the budget to meet the conditions.

The IMF was briefed on the measures taken by Pakistan to increase gas prices and other economic decisions in the budget, sources added.

Sources indicated that negotiations for a new loan program are underway, and an agreement is expected to be signed this month.

According to the Ministry of Finance, all prior conditions for negotiations with the IMF have been completed.

On June 29, the International Monetary Fund (IMF) termed budget 2024-25 approval as not enough and demanded Pakistan to do more.

Sources said that, IMF wants Pakistan to hike the electricity and gas rates from July 1 and immediately implement the NEPRA decision regarding the increase in gas and power tariff.

IMF also demanded the removal of tax exemptions and subsidies, terming them “essential” for the country’s economic recovery, sources added.

READ: IMF says budget 2024 approval ‘not enough’, demands Pakistan to ‘Do more’

Later, finance ministry officials anticipated that an agreement for the new loan program will be finalized in July. The new program is expected to range between $6 billion and $8 billion, although the exact amount has yet to be finalized.

The new loan program with the IMF is projected to span three years.

The National Assembly (NA) on July 28 approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.