The International Monetary Fund (IMF) has reportedly called on Pakistan to increase gas tariffs, with potential hikes reaching up to 41 percent by mid-February, according to sources. The IMF has also insisted on reducing subsidies in the power sector, except for those included in the budget. Additionally, a significant cash release is anticipated, including Rs 1000 billion for the petroleum sector, Rs 250 billion for the power sector, Rs 600 billion for OGDCL, and Rs 150 billion for the PPL.
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Earlier, Pakistan presented a proposed electricity tariff plan for the export sector to the IMF, aiming to lower the power tariff from 14 cents to 9 cents. This proposal is designed to stimulate the country’s exports and is subject to IMF approval.
It is noteworthy that the IMF recently revised down Pakistan’s growth estimate for fiscal year 2024 to two percent, indicating a 0.5 percent reduction from the October outlook, as per the World Economic Outlook (WEO).
