IMF has demanded a complete removal of electricity subsidy

International Monetary Fund (IMF) team has demanded a complete removal of electricity subsidy, raising GST on all products and goods from 17 per cent to 18 per cent

Differences between Pakistan and IMF on the issue of power sector subsidies, petroleum development levy target and GST continue, due to which technical-level talks have been extended for two days. has been done.

According to sources, technical-level talks of the IMF team were scheduled till Friday, but technical-level talks were extended to further consider some issues so that a final conclusion could be reached in the policy-level talks.

Pakistan and the IMF have not been able to agree on some issues, Pakistan has presented various alternative proposals to overcome the fiscal deficit, the IMF has also demanded to end the subsidy given on electricity to the export sector so that the circular debt of Rs 952 billion can be reduced due to the increase in electricity prices. Trying to convince the team.

Regarding the subsidy, the two teams have agreed in principle and pakistani authorities have prepared to reduce the basic deficit and under the revised circular debt management plan, the amount of additional subsidy has been reduced to Rs 605 billion

Has previous privatization activity benefited underperforming institutions?

The International Monetary Fund (IMF) has given the government more things to do, like privatize public institutions that lose money and raise the prices of electricity and gas. Has previous privatization activity benefited underperforming institutions?

According to the sources, the IMF and Pakistan have concluded their technical negotiations. During the talks, the IMF asked Pakistan to raise its prices for electricity and gas, put an 18% value-added tax on oil, and privatize its public institutions that were losing money.

According to sources, the IMF has also demanded that state intervention in the economy be limited through privatization and routine audits of government institutions. In addition, the IMF has called for the eradication of corruption and bureaucracy, as well as the promotion of business and tax cultures. They have asked for LNG power plants, and the House Building Finance Corporation to be sold to private companies.

While trying to cut down on losses at PIA, steel mills, and other institutions, the IMF is said to have said that institutional flaws should be fixed for economic growth, investment, and job creation, and that public and private institutions should have the same opportunities and facilities. According to sources, Pakistan and the IMF will now engage in policy-level discussions.

Governments have privatized state-owned enterprises (SOEs) for decades to enhance their performance and reduce fiscal risk. The performance of SOE was frequently disappointing. Reforms for state-owned enterprises aimed to enhance their financial and operational performance and bolster their balance sheets. However, they rarely generated profits or dividends. It was decided to reduce the flow of public funds to SOEs, to separate commercial and noncommercial objectives, to obtain commercial financing, to strengthen oversight and monitoring, to improve SOE boards and management, and to minimize political interference. Some actions were successful, but the majority were not.

Is the IMF really a savior for our economy

Pakistan’s rulers want to restart the IMF agreement, which has been suspended for a year. People in Pakistan think the IMF is against the people, helps the elite, and is to blame for increasing poverty. However, it is seen as their only hope after years of economic crises.

There is only one option left: the IMF, as is repeatedly stated in every newspaper column and on every talk show. These words have been used so frequently that people are accustomed to hearing them.

“We” will be destroyed, go bankrupt, and no one will provide financial support for “us” if we don’t accept the IMF’s “reforms,” These phrases have developed into the new hymn that is sung in front of us every day.

Some economists warn that our current inflation rate of 25% could rise to 35% if we accept the IMF’s stringent conditions. If the IMF’s demands are met, the value of the dollar will exceed 300 rupees. In recent months, it has been rumored to be worth more than 200 rupees. If electricity and gas are made available to the general public, their costs will increase. Everything will increase in price, including gasoline, which is vital to our economy. Imports will also be significantly more expensive, and our aristocracy cannot survive without them.

Some analysts argue that accepting the IMF’s tough conditions will worsen the situation, but if we don’t we will most likely default. Inflation rates range between 35% and 70% in Pakistan; 2,200 luxury cars have been imported into the country despite a dollar shortage.

The IMF is Pakistan’s military and civilian elites’ only option. The elite has failed to implement effective reforms and create a substantial economic reform policy for years. Our elites looted our nation to the brink of default. Neither “we” nor “saving the country” are concepts. Class distinctions are crucial. All economic factors and interventions—inflation, austerity, fiscal discipline—are unevenly distributed.

The IMF is not a savior here for ‘us’ or ‘our’ country but for ‘some people’ and ‘their country’. The agreements under negotiation benefit only the capital and the people who benefit from it. Structural reforms such as distribution of energy or capital along class, gender and regional lines have never been part of our adjustment program.

Zaidi, S. Akbar. “کیا واقعی آئی ایم ایف ہماری معیشت کے لیے نجات دہندہ ہے؟.” Dawn News Television, 3 Feb. 2023, www.dawnnews.tv/news/1196138.

The Islamabad High Court (IHC) will hear the daughter concealment case with a larger bench.




The Islamabad High Court (IHC) on Tuesday formed a larger bench to hear former prime minister Imran Khan’s petition to disqualify his daughter Terrian Jade White for not mentioning her in her nomination papers.



Monday saw former prime minister Imran Khan respond to the Islamabad High Court (IHC).



The petitioner wants Imran Khan disqualified as an MLA under Article 62(1)(f) for lying in his nomination papers.



Sajid Mehmood filed a petition against Prime Minister Imran Khan for not including his daughter in the nomination papers. IHC Chief Justice Aamer Farooq heard the petition.



Sajid Mehmood’s lawyer, Salman Butt, appeared in the High Court while Imran Khan’s lawyer, Salman Akram Raja, was busy in the Supreme Court.





Salman Akram Raja’s assistant lawyer said he appeared in Supreme Court bench number one and submitted a written reply.



The Election Commission denotified Imran Khan, according to Chief Justice Islamabad High Court.



The petition’s 2018 affidavit prompted the court to inquire about Imran Khan’s current situation.



The assistant counsel said the Election Commission of Pakistan (ECP) disqualified Imran Khan and resigned.



The assistant lawyer said you are a valuable judge, there is no such thing, due to some reasons, there is no hurry in this case, give a date for March.



The Chief Justice told Imran Khan’s lawyers that you have raised objections to the bench, Salman Abuzar Niazi said that you are the best judge, we only put some information in front, and that in 2018, he did not apologise for personal reasons because the petitioner had requested a specific bench.



If you object, Justice Aamer Farooq will reconstitute the bench and present this matter to the larger bench.



Chief Justice Islamabad High Court (IHC) adjourned the case to February 9.



Petitioner claims,

Imran Khan sponsored Terrian White in the UK but did not mention it in his nomination papers or election affidavit.



Former Attorney General Salman Aslam Butt, who represented the petitioner, submitted Jemima Khan’s 2004 declaration.



“I support Terrian Jade Khan White’s request that Caroline White (sister of Terrian’s mother Anna Louisa Sita White) be appointed Terrian’s guardian,” it said.



Jemima Khan refused to mentor Terrien Jade and suggested Caroline White’s patronage because she thought it was best for Terrian.



Lord Gordon White, who ran Hanson plc’s U.S. branch, was Sita White’s father.



Sajid Mehmood claimed that the PTI chairman did not marry Sita White because his “racist” father had categorically told the respondent (Imran Khan) that they would not get a penny from his wealth if he married her.





After this, Imran Khan met Jemima, another rich woman, and married her quickly.



The petition mentioned Jemima’s custody of Terrian Jade.



Anna Lucia White’s will of February 27, 2004, named Jemima Khan as Terrian Jade Khan White’s guardian. Sita White died on May 13, 2004.



The petition claimed Imran Khan married Jemima Goldsmith from 1995 to 2004.



The petition claimed that a California court ruling that Imran Khan is Terrian Jade’s father confirmed the hidden facts.



When asked to take a blood test, Imran Khan withdrew from the case through his attorney.



When Sita White’s sister Caroline White requested Terrien’s guardianship, she submitted a declaration, according to the petition.

The auto industry is on the verge of collapse as the government permits vehicle imports.

The government let 2,200 luxury cars into the country at a time when automakers and assemblers are about to shut down their plants. This cost the cash-strapped country $1.2 billion in the first half of the current fiscal year.
Pakistan spent $1.2 billion (or Rs259 billion) on the imports of transportation items, including luxury cars, high-end electric vehicles, and their parts, during the last six months. The country has less than $4 billion in its reserves and is in desperate need of dollars.

A leading automobile manufacturer has criticized the government’s decision to allow the import of luxury cars and other expensive vehicles. It said that it seems like a deliberate act to sabotage the local auto industry, which provides jobs to over 4 million people, contributes 4 percent to GDP, and pays direct and indirect taxes.

A senior auto company official said that the Pakistan Automobile Manufacturers Association has already sent a letter to the Ministry of Industries. He said that if the issue of LCs is not resolved soon, there will be huge layoffs in the country’s auto industry.

He said Millat Tractors suspended operations, and Al-Ghazi Tractors was operating at 20% of capacity. He said auto assemblers and manufacturers’ demurrage charges can exceed consignments’ value. (“Auto industry near collapse as Govt allows vehicle imports”)

Pak Suzuki Motor Company Ltd. extended its auto plant shutdown due to inventory shortages, partly imported from abroad. From December 20–30, Toyota-maker Indus Motors Company (IMC) closed its plant in the country. (“Pakistan facing economic collapse”)

Auto Industry on Verge of Collapse as Govt Allows Import of Vehicles. Accessed 30 Jan. 2023.