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Summary
Pakistan had agreed under May 21, 2009 agreement to increase electricity prices by 41.5 percent however in June the government stopped its implementation during a debate session in the parliament and called the decision politically harmful, IMF has revealed. According to the second evaluation report of the IMF, Pakistan made an agreement with World Bank and Asian Development Bank to increase the electricity prices. Under the agreement the government had to increase prices in three steps. IMF said that under the new condition, the government would give the authority to set the electricity tariff to NEPRA after a presidential ordinance. NEPRA will fix the tariff on monthly and three-month basis. The government will have to make a new structure by September 15 for the FBR reforms. The government is bound to tender a bill on Value Added Tax System in the parliament by the end of 2009.
