IMF Talks Set to End with Anticipated Increase in Fuel and Energy Prices - Capital TV

May 29, 2023


IMF Talks Set to End with Anticipated Increase in Fuel and Energy Prices

Anum Razzaque

ISLAMABAD: The dialogue with the International Monetary Fund (IMF) is expected to conclude today, prior to the bailout. An increase in fuel and energy prices is anticipated.

The funds’ delegation is currently in Islamabad and holding discussions with the Finance Minister, Muhammad Ishaq Dar, and his team regarding reforms.

According to Capital TV, the delegation directed the government to remove subsidies on energy and increase the sales tax from 17% to 18%.

On the contrary, the government has presented recommendations to address the economic crisis instead of imposing additional taxes.

Meanwhile, the negotiations have not yet been completed due to differences in technical discussions, resulting in a delay of policy negotiations.

The loan lender mission is reported to have approved an adjustment to the gas tariff, which should initially address the flow of circular debt. This would result in an average increase of about Rs 100 per unit in gas rates, as determined by the Oil & Gas Regulatory Authority (OGRA).

However, the government has requested that the funds provide subsidies to flood victims instead of imposing taxes. Yet, the energy minister acknowledged the day before that the loan lenders pushing for reforms in the energy sector.

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