IMF asks Pakistan to jack up power, gas tariff for revival of programme

ISLAMABAD: 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 programme, ARY News reported, citing sources.

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

The sources say the IMF has sought a roadmap from Pakistan for the collection of Rs855 via petroleum levy till June 30, 2023. The Pakistani authorities have to jack up levy on diesel by Rs15/litre and drag it to Rs50/litre.

The IMF has also sought settlement of circular debt in the gas sector for the revival of the stalled loan programme, the sources said and added Pakistan has to jack up the gas price up to 74% to fix the debt.

Pakistan has been also directed to take steps for the increase of Rs300 billion in tax collection and increase the basic electricity tariff.

It has also been learnt that IMF wants Pakistan to end the ‘artificial ban’ on the dollar exchange rate.

Finance Minister Ishaq Dar is also worried over the ‘strong stance’ of the International Monetary Fund (IMF), the sources said.