Govt accepts IMF's do more demand, will hike electricity tariff
Business
The proposal to increase the levy on petroleum products was also considered
ISLAMABAD: (Dunya News) – The government accepted the IMF's do-more demand and assured the international financial institution to increase the electricity price.
Negotiations between the government and the International Monetary Fund (IMF) on the second economic review are continuing for the third day.
In the talks held in Islamabad, the government assured the IMF of timely increase in electricity tariff with effect from July 1 under monthly, quarterly and annual price adjustments.
According to sources, the government has also assured to gradually document the economy to raise tax revenue, with a staff-level agreement between the parties likely as early as next week.
The IMF stressed on ensuring the protection of the beneficiaries under BISP while the government assured to increase the number of BISP beneficiaries by June as well as the timely tariff adjustments and hikes to deal with the energy sector circular debt.
The IMF called for maintaining a tight monetary policy and a market-based exchange rate policy and the IMF delegation insisted on continuing the necessary reforms for the continuation of economic stability.
According to the sources, Pakistan will get the final instalment with the approval of the Executive Board on the successful completion of the negotiations.
Officials of the Petroleum Division told the IMF delegation in a briefing that the gas sector circular debt was not allowed to increase this fiscal year, which currently stands at Rs2,300 billion.
In the briefing to the IMF, it was further informed that the government is working on reforms in the gas sector and affordable energy projects, investment in the energy sector and dependence on local resources is the priority of the government.
Pakistan's annual import bill of petroleum products has reached $17.5 billion. The proposal to increase the levy on petroleum products was also considered in the federal budget of the next financial year.
Officials have also assured the IMF of reducing the circular debt of the gas sector and making adjustments in gas prices in a timely manner.
