IMF asks Pakistan to end subsidy allocated for energy sector
Last updated on: 10 November,2018 12:49 pm
The second round of talks between Pakistan and IMF delegation held in Islamabad on Thursday.
ISLAMABAD (Dunya News) – The second round of talks between Pakistan and International Monetary Fund (IMF) delegation held in Islamabad on Thursday, Dunya News reported.
The IMF delegation which arrived in Pakistan on October 7 will be in the country for two weeks to hold talks with Pakistani officials regarding a possible bailout package.
According to sources, FBR official briefed the IMF delegation during today’s meeting. Data regarding the different sectors of the economy was shared with the IMF team today.
The power division officials shared the data of Pakistan’s power sector with IMF’s technical team in today’s meeting along with the sector s losses and recovery. The government officials briefed the IMF team about the line loss tariff recovery and about circular debt.
The IMF expressed dissatisfaction with the present structure of energy sector in Pakistan.
The IMF presented a new set of measures for the energy sector reform. Measures include:
-- All companies should collect 100 percent bills or what electricity they have sold
-- Government should take steps to reduce losses
-- Rehabilitation required to end subsidy allocated for energy sector
It is pertinent to mention here that the IMF had given the previous government a 14 point agenda to reform the energy sector, however the government failed to implement any of the reforms.