IMF Urges Pakistan; Strong Reforms Needed for Energy Sector Viability

IMF Urges Pakistan; Strong Reforms Needed for Energy Sector Viability

VoM News Desk | May 11, 2024 | 11:01 PM IST | Energy, Pakistan News, World | Follow on Google News

IMF Urges Pakistan; Strong Reforms Needed for Energy Sector Viability

IMF Urges Pakistan; Strong Reforms Needed for Energy Sector Viability

Key Highlights:

1. IMF emphasizes strong cost-side reforms for Pakistan’s energy sector.
2. Pakistan urged to meet fiscal targets, including circular debt management.
3. International Monetary Fund calls for an end to power subsidies in the industry sector.

The International Monetary Fund (IMF) has emphasized the necessity for Pakistan to implement robust cost-side reforms to restore the viability of its energy sector, according to ARY News. In its latest staff report for the final review under the USD 3 billion stand-by arrangement, the IMF stressed Pakistan’s need to achieve its fiscal year 2023-24 circular debt management plan (CDMP) target of Rs 2.3 trillion without accumulating net zero stock.

The IMF highlighted the importance of timely notification and implementation of fiscal measures, including annual rebasing, to prevent further circular debt flow. Additionally, the IMF urged Pakistan to reform agricultural tube well subsidies and end power subsidies for the industry sector in the upcoming financial year 2024-25 budget. The global lender’s recommendations come as a technical team arrives in Islamabad for talks on a fresh loan program and budget preparations.

As Pakistan braces for discussions with the IMF, the government has expedited preparations for budget targets and directed relevant ministries to complete tasks promptly. The approval of strategic papers on the FY25 budget is on the agenda, with the federal cabinet expected to weigh in before the IMF mission’s arrival.

Source: ARY News

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