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Pakistan accepts IMF’s conditions for bailout package

Pakistan accepts IMF’s conditions for bailout package
May 8, 2019
ISLAMABAD (92 News) – Pakistan has accepted the conditions of the International Monetary Fund (IMF) for bailout package. According to the details garnered, the federal government accepted the demand of the IMF of increasing electricity and gas prices in Pakistan. It also said that the consumers will pay Rs340 billion in three years for electricity and gas. The government has also agreed to make the National Electric Power Regulatory Authority (NEPRA) an autonomous body to set electricity prices. It further reported that only exporters will be given limited subsidy in industrial consumers. “The Oil and Gas Regulatory Authority (OGRA) will also be made autonomous in setting the prices,” it added. Both the respondents already agreed on the amnesty scheme and it was said that the value of rupees fixed by the market. However, the taxes worth of 500 billion rupees will be increased within three years of the period. The government will not provide subsidy and tax relief to any department.
Negotiations with IMF moving ahead in positive way: Hafeez
Earlier, Adviser on Finance Abdul Hafeez Shaikh said that the negotiations with International Monetary Fund (IMF) are moving ahead in a positive way to reach a program. Addressing an Investment Conference, the PM adviser said that IMF package will provide a platform for macro-economic development in the country. Dr Hafeez Shaikh also said that agreement with IMF will send a positive signal to other international financial institutions as well as countries regarding Pakistan’s commitment to fiscal discipline.
Upcoming budget
The adviser said the upcoming budget will contain steps to address gaps in current account deficit and fiscal deficit for attaining sustainable economic growth. Hafeez Sheikh said the government’s measures have resulted in reduction in imports and increase in exports and remittances. He said steps have also been taken to decrease expenditures, and coordinated efforts are underway to increase revenue.