Wednesday September 22, 2021

IMF asks Pakistan to increase gas, electricity prices

Agencies
September 11, 2020

ISLAMABAD: The International Monetary Fund (IMF) has urged the Pakistani government to hike the prices of gas and electricity for consumers, a move if it happens would put extra burden on people already suffering due to economic fallout of coronavirus.

The global lender, demanding do more from Pakistan in recent contact, asked the authorities concerned to reduce the circular debt and electricity losses. The IMF demanded the Pakistani government to give a free hand to the National Electric Power Regulatory Authority (Nepra) and Oil and Gas Regulatory Authority (Ogra) to decide on the prices.

It further asked for implementing the economic and tax reforms. It also asserted that tax collection target for first quarter (July-September) of the running fiscal year must be achieved.

The IMF urged Pakistan to collect more than Rs1,000 billion in the wake of taxes during the said period. Last year, the global lender had approved $6 billion bailout package for Pakistan under the Extended Fund Facility (EFF) after the country agreed to enforce flexible exchange rate, enhance taxes and end circular debt.