On Thursday, Pakistan accepted the International Monetary Fund’s (IMF) condition to abolish subsidies on the energy sector. Sources reveal that the IMF has also required the timely issuance of notifications regarding the annual tariff adjustment.
Reports indicate that both parties have agreed to expedite the collection of electricity bills. Additionally, Pakistan and the IMF have reached an agreement to present a plan for abolishing the subsidy provided to tube wells.
The IMF has demanded the elimination of circular debt in the gas sector and has called for the issuance of a notification to increase gas prices starting June 1. The IMF also insists on stopping the supply of gas to captive power plants at reduced rates within the ongoing year.
Furthermore, the IMF has urged the Pakistani government to standardize gas rates for all fertilizer plants and other industries across the country.
Negotiations for the 24th ‘longer and larger’ bailout program between Pakistan and the IMF began on Monday, marking a critical phase in their economic discussions.
