Shaukat Tarin predicts hike in gas tariff, taxes soon under IMF deal

KARACHI: Former finance minister Shaukat Tarin on Saturday warned that the gas prices will witness an extraordinary hike of 53 percent while more taxes will also be imposed by the government, ARY NEWS reported.

Addressing a presser in Karachi, Shaukat Tarin said the hike in gas prices and taxes will be made under the IMF deal signed by the incumbent government.

“They have signed a tough deal with IMF,” he said, adding that even that has not helped the rupee which made minor recovery against US dollar for only two days and since then the greenback has made a stronger comeback.

He claimed that the incumbent government has secured a loan of US$9.4 billion in their four months. “We have never bowed down before IMF and rather fought with them to seek relief for our people.”

Shaukat Tarin asked the government to refrain from increasing electricity and gas prices immediately as the nation is being devastated by the flash floods. “Increase the tariff of utilities phase-wise rather than doing it in a go,” he suggested.

He further offered a helping hand to the government and said that the entire nation needs to unite over floods. “We are willing to work with them to deal with flood situation,” Tarin said.

IMF deal 

The International Monetary Fund (IMF) has placed tougher structural benchmarks for Pakistan under the implementation plan for qualifying the next loan tranches, amounting to $3 billion on Saturday.

According to a report on the completion of the seventh and eighth reviews of the extended fund facility (EFF), the global lender has slapped eight more tougher targets on Pakistan in addition to giving fresh deadlines to meet the actions.

For the revival of the IMF programme, the IMF has asked Pakistan to ensure electronically filed tax and asset details of bureaucrats, cabinet members and the parliamentarians and make them available to public.

The Fund has asked the government to end subsidies granted during the Imran Khan-led government. The IMF has asked the country to increase the levy on petroleum products to be increased from Rs30 to Rs50.

The report further stated that Rs855 billion should be collected from the people by increasing the petroleum levy.

The government has also committed to ensure revival of general sales tax (GST) on petroleum products. “A 10.5 percent sales tax will be levied on petroleum products”, the report stated.

Meanwhile, the electricity tariff would reach upto Rs26 per unit as IMF has directed to slash subsidised rates for electricity.