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