IMF sets tough conditions for new loan programme; expresses concern over rising prices commodities

Pakistani officials were in intense discussions with the International Monetary Fund (IMF) review mission to get approval for a new loan program.

During today’s meeting, the IMF presented strict requirements, emphasizing the urgent necessity for extensive changes in Pakistan’s economy.

A primary condition set by the IMF is to halt the ongoing provision of rolling credit for electricity and gas, along with an immediate stop to the theft in these areas.

Additionally, the IMF pressed for a quick transition of Distribution Companies (DISCOs) into private sector management, emphasizing the need for a clearly defined timeline.

The IMF delegation expressed a profound concern about the continuous rise in commodity prices in Pakistan, questioning why this differs from global trends. They urged Pakistani officials to take firm action to control inflation.

Of particular contention was the subsidized gas provision to fertilizer plants, which the IMF insisted be stopped. The need for concrete measures to prevent electricity and gas theft was also highlighted as essential conditions for the loan program.

In reaction, Pakistani officials pledged to improve tax collection through technology, expressing their resolve to reach this year’s tax goal.

Additionally, commitments were given to include the real estate, manufacturing, and retail sectors in the tax regime, focusing on increasing revenue generation.