Sunday, September 26, 2021
اُردُو نیوز Newspaper Live-TV(UK) Live-TV(PK)
اُردُو نیوز Newspaper
Live-TV(UK) Live-TV(PK)
Hot Topics

Deadlock with IMF still exists days before presentation of federal budget

Deadlock with IMF still exists days before presentation of federal budget
June 7, 2021

ISLAMABAD (92 News) - The deadlock with the IMF over the amount of relief and repayment of revolving loans is still exists even four days before presentation of the federal budget 2021-22.

According to the reports, the virtual meetings are underway between Pakistan and the IMF regarding the sixth review. With only four days left in the federal budget, however, the deadlock with the IMF could not end.

According to sources in the Finance Ministry, it has become a difficult task to give relief of Rs1400 billion and revolving loan of Rs2400 billion in a single financial year. The IMF is insisting to raise the prices of electricity and petroleum to ensure payments and access to funds, and the budget committee opined that reducing the relief amount to Rs900 billion will not work.

The sources also stated that  the IMF has demanded an immediate increase of electricity prices as 50 paisa per unit to deal with the revolving loan. "If the unit price of electricity was not raised, the revolving credit would be Rs2800 billion in the next financial year. The prices of petroleum products should also be increased. But Pakistan adopted a stance that immediate increase in electricity and petroleum prices is impossible," it added.

"Pakistani side further said that in October and January, the unit price of electricity can be increased by 7 to 8 paisa per unit. Rising electricity prices will increase power theft and decreasing demand can also lead to lower incomes," the sources maintained.

We will never bother you as we have advance notification system for the latest news and updates. You will see a button at bottom of page to disable anytime.