IMF wants Pakistan to hike electricity tariff

ISLAMABAD: The International Monetary Fund (IMF) has demanded of Pakistan to increase electricity tariff, ARY News reported, citing sources.

The demand was made during the virtual talks between the IMF officials and Pakistan for the release of $1 billion loan installment.

“Electricity tariff should be jacked up by Rs1.40 per unit,” the IMF recommended during the talks as it will help Pakistan in controlling the circular debt.

The fund has asked for more steps to increase income tax, sales tax, and regulatory duties collection and urged the Federal Board of Revenue to take steps in this context.

The IMF has asked Pakistan to increase FBR’s yearly collection to Rs63 trillion from Rs58 trillion, the well-informed sources said.

It must be noted that today is the third day of virtual talks between Pakistan with the International Monetary Fund (IMF) in Islamabad.

Negotiations are underway with the fund for a $1 billion loan installment. Negotiations with IMF officials will continue this week.

It is to be mentioned that a loan agreement worth $6 billion was delayed between the IMF and Pakistan.

On August 24, Pakistan received $2.75 billion from the International Monetary Fund.

As per the State Bank of Pakistan (SBP), the country has received 2.75 billion US dollars from the IMF as part of the SDR allocation.

With the transfer of $2.75 billion, the country’s foreign exchange reserves have jumped to $27.4 billion.