Whopping Rs 1.27tr hike in taxes committed with IMF

According to statement released by the IMF after approval by its executive board of directors of the modified extended fund facility (EFF), the government has agreed to jack up electricity rates by almost Rs. 4.97 per unit in the remaining three months of the current fiscal year.

Following the agreement, the government would also bring down the current year’s development programme to Rs. 1.169tr which was previously Rs. 1.324tr.

After approval by IMF, the government has also given an undertaking to continue making electricity tariff adjustments next year on monthly, quarterly and annual basis.

In a statement issued from Washington after the meeting of the executive board, the government emphasized that the only way out of the gray list is to comply with the remaining three conditions of IMF.

However Pakistan has promised to implement these conditions by June 2021.

Moreover, Pakistan will meet several conditions in six months to stay in the $6 billion IMF programme but its economic endurance still hinges upon an $11 billion.