Business
IMF restricts provincial govts from subsidy on electricity bills
Federal and provincial government cannot bring any such scheme that would affect IMF agreement, added sources
Islamabad: The International Monetary Fund (IMF) expressed dissatisfaction over Chief Minister Punjab Maryam Nawaz’s project of providing a subsidy of Rs14 per unit in electricity bills.
The IMF has directed to dismiss the subsidy on electricity bills which was to be implemented till September 30.
According to the sources, the IMF has reminded the government that according to the agreement, the federation and provinces cannot provide the subsidy in electricity bills.
The sources also stated that before bringing any new scheme, the provincial government is bound to discuss it will the federal finance ministry.
Federal and provincial government cannot bring any such scheme that would affect IMF agreement, added sources.
Sources said that as per the agreement, the provincial government had committed to raise the taxes. Following the agreement, the provincial governments are bound to improve Agricultural Income Tax, Property Tax, and Sales Tax in Services.
The sources added that IMF’s new conditions could affect the solar panel project of Chief Minister Punjab Maryam Nawaz worth Rs700 billion.
It is pertinent to note that Pakistan is fulfilling the terms and conditions for getting a loan of Rs7 billion from the IMF. It is also struggling to get the date for the meeting of the IMF Executive Board. The experts have declared the current week important for fulfilling the IMF conditions.