Power Division officials briefed the IMF on proposed higher fixed rates for on-grid solar energy, which could slow solar adoption.
IMF Orders Pakistan to Introduce Mini-Budget or Cut Fiscal Expenditure. The International Monetary Fund (IMF) has demanded the federal government of Pakistan to impose a mini-budget and cover the Rs. 189 billion revenue shortfall or come up with a concrete plan to control fiscal expenditure.
Finance Secretary Imdad Ullah Bosal and Federal Bureau of Revenue (FBR) Chairman Rashid Mehmood Langrial held the first meeting with the visiting IMF team. Despite Pakistan’s efforts, meeting the IMF’s demands poses a challenge. The government is expecting tough negotiations.
Finance Minister Muhammad Aurangzeb has already informed the lender of tax collection of Rs. 11 billion from retailers, wholesalers, and distributors in the first fiscal quarter. Meanwhile, FBR increased tax collections by enforcing stricter tax regulations.
Power Division officials briefed the IMF on proposed higher fixed rates for on-grid solar energy, which could slow solar adoption.
The lender aims to implement corrective measures to prevent further fiscal slippages and address potential financial gaps before February-March 2025.
If expenditure cuts remain limited, the IMF may push harder for a mini-budget to boost the tax-to-GDP ratio to the desired levels.
