IMF Agreement: Electricity Prices Expected to Rise Further

The authorities have pledged to continue implementing essential reforms for economic stability.

IMF Agreement: Electricity Prices Expected to Rise Further. Economic deliberations between Pakistan and the International Monetary Fund (IMF) have progressed, revealing a likelihood of further increases in electricity tariffs.

According to sources within the Ministry of Finance, the government has confirmed timely increments in electricity tariffs and anticipates additional hikes from July 1st onwards.

It has been reported that monthly, quarterly, and annual adjustments will be made for cost recovery purposes, while gradual documentation of the economy is planned to boost tax revenue.

The IMF has emphasized on safeguarding the welfare of beneficiaries under the Benazir Income Support Program (BISP), with the government undertaking measures to expand the program’s coverage by June.

The authorities have pledged to continue implementing essential reforms for economic stability, including maintaining stringent monetary policies and upholding market-based exchange rates.

The successful conclusion of negotiations is expected to lead to the disbursement of a $1.1 billion tranche, subject to approval by the Executive Board, which would mark the release of the final installment totaling $1.1 billion to Pakistan.

Sources within the Ministry of Finance have indicated that negotiations with the IMF this time were relatively smoother, with no strict schedules set for discussions, indicating a more amicable atmosphere compared to previous engagements.