IMF pushes Pakistan to increase gas, electricity prices

IMF pushes Pakistan to increase gas, electricity prices
Islamabad: International Monetary Fund (IMF) has urged Pakistani government to raise prices of gas and electricity prices for consumers, a move if happens would put extra burden on people already suffering due to economic falls out of the coronavirus pandemic.

The global lender demanding do more from Pakistan in recent contact asked the authorities concerned to reduce the circular debt and electricity losses.

IMF demanded the Pakistani government to give free hand to 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 the Pakistan to collect more than Rs1,000 billion in 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.