IMF lauds economic decisions, efforts to hike gas prices

ISLAMABAD: The International Monetary Fund (IMF) on Wednesday appreciated Pakistan’s tough economic decisions and efforts regarding hike in gas prices.

According to sources, Pakistan and the IMF held virtual talks on the efforts made in the budget to meet the conditions. The IMF was briefed on the measures taken by Pakistan to increase gas prices and other tough economic decisions in the budget, sources added.

The sources disclosed that an important development was expected towards the end of the ongoing month as far as the new loan for Pakistan was concerned, and the volume of the programme, which would be for a three-year period, could be between $ 6 billion and $ 8 billion.

IMF delineates steps to curb gas circular debt

According to the Ministry of Finance, all prior conditions for negotiations with the IMF have been completed.

Sources explained that the government was also taking steps to fulfill other conditions set by the Fund.

For instance, they went on to say, work was in progress on increasing the basic tariff of electricity in light of the National Electric Power Regulatory Authority’s decision.

The new electricity prices would take effect in the current month, they disclosed.

On June 29, the IMF termed budget 2024-25 approval as not enough and demanded Pakistan to do more.

Sources said that the IMF wants Pakistan to hike the electricity and gas rates from July 1 and immediately implement the NEPRA decision regarding the increase in gas and power tariff.

The IMF also demanded the removal of tax exemptions and subsidies, terming them “essential” for the country’s economic recovery, sources added.

Later, finance ministry officials anticipated that an agreement for the new loan programme will be finalised in July. The new programme is expected to range between $ 6 billion and $ 8 billion, although the exact amount has yet to be finalised.