IMF 'demands' further increase in electricity prices

ISLAMABAD: The International Monetary Fund (IMF) has demanded further increase in electricity prices, citing an additional burden of Rs 150 billion on the power sector, ARY News reported citing sources.

According to sources, the IMF has asked the Ministry of Energy to increase the electricity tariff from Rs5 to Rs7 per unit in July.

The IMF has expressed concern over the failure to achieve the targets, and the power sector’s circular debt is expected to reach Rs 2500 billion by the end of the current financial year. The Ministry of Energy has been unable to control the circular debt, sources said.

The IMF has also asked the Ministry of Energy to share a plan to increase the power and gas tariffs in the next financial year. The mission is currently in talks with the Ministry of Energy officials to discuss the matter further.

It is worth noting that the power sector’s circular debt was supposed to be controlled at Rs 2310 billion by the end of the current financial year, but it will exceed the target by Rs 150 billion till June.

Also read: IMF demands 18% GST on petrol

The IMF has warned that the circular debt will continue to increase if urgent measures are not taken.

Earlier, the International Monetary Fund (IMF) demanded Pakistan to implement 18 percent General Sales Tax (GST) on Petrol.

As per details, the Monetary Fund asked Pakistan to end sales tax relaxation on all items including petrol.

The government of Pakistan should also implement sales tax on petroleum products along with a Rs 60 levy to increase the tax income.

Prior to this, the International Monetary Fund (IMF) recommended the government of Pakistan implement an 18 percent General Sales Tax (GST) on food, medicine, petroleum products, and stationery.

The IMF also recommended bringing several dozen items under the standard rate of 18% GST, including unprocessed food, stationery, medicine, POL products, and others.