The International Monetary Fund (IMF) has called on Pakistan to raise electricity and gas prices starting from July 1 and to swiftly implement the National Electric Power Regulatory Authority’s (NEPRA) decisions on increasing tariffs.
Despite the recent approval of the Federal Budget for the fiscal year 2024-25 by the National Assembly, with a total outlay of Rs18.877 trillion, the IMF has deemed these measures insufficient and is demanding further actions, sources revealed on Saturday.
Key IMF demands include:
- An increase in electricity and gas prices.
- The elimination of tax exemptions and subsidies, which the IMF describes as “essential” for Pakistan’s economic recovery.
The IMF has praised the government’s difficult economic decisions, such as reducing tax exemptions and subsidies included in the budget, but insists on additional reforms.
PM Shehbaz Admits IMF Role in 2024-25 Budget
The IMF delegation’s scheduled visit to Pakistan, initially set for the last week of June, has been postponed to the second week of July.
Prime Minister Shehbaz Sharif acknowledged that the government had considered the IMF’s recommendations while preparing the budget for FY 2024-25 and expressed optimism about receiving a favorable response from the IMF. “If the response from the IMF is positive, we will present it before the house on Wednesday,” he stated.