Economy, News

IMF asks Pakistan to hike gas tariff

In a significant development, the International Monetary Fund (IMF) has reportedly urged Pakistan to raise gas tariffs, escalating economic tensions. The proposed gas price hike, if implemented, could soar up to 41 percent by mid-February, according to credible sources.

The IMF, maintaining a stern stance, has refused to provide subsidies on power tariffs, with exceptions limited to those already allocated in the budget. The financial body has recommended cash allocations for various sectors, including Rs 1000 billion for the petroleum sector, Rs 250 billion for power, Rs 600 billion for OGDCL, and Rs 150 billion for PPL.

In response to the IMF’s pressure, Pakistan presented an electricity tariff plan for the export sector, aiming to lower the power tariff from 14 cents to 9 cents. However, this proposal is pending IMF approval, and tensions arise as the IMF had previously rejected a similar decision.

Pakistan’s export sector, advocating for reduced power tariffs to boost exports, faces a complex negotiation dynamic with the IMF. The global financial institution has revised down Pakistan’s growth estimate for fiscal year 2024 to two percent, marking a 0.5 percent reduction from the October outlook, as reported in the World Economic Outlook (WEO).

The economic implications of the IMF’s conditions, including demands for gas and power tariff adjustments, underscore the challenges Pakistan confronts in meeting international lender expectations. The refusal to provide additional power tariff subsidies points to potential budgetary impacts and fiscal challenges in the foreseeable future.

Negotiations between Pakistan and the IMF are ongoing, focusing on critical economic measures and fiscal reforms. The IMF’s insistence on tariff adjustments signals its expectation for substantial policy reforms, further shaping the trajectory of Pakistan’s economic landscape. As the nation grapples with ongoing economic challenges, these negotiations hold a pivotal role in determining the path ahead.

Also, see:

Kuwait Launching Online Part-Time Work Permits

Topics #featured #Pakistan #trending pakistan

Zainab Shafiq

Over six years of professional content writing, my versatile portfolio has aided the satisfaction of more than 40 clients in diverse niches. My prowess, however, is best exhibited in the cricket sphere. Over 20 clients that I have worked with are renowned for their inside news coverage, analytical pieces, and entertaining blogs. The adaptation can be seen in national markets and international countries like India, Canada, Malaysia, the UK, and Pakistan. Mostly, I write news and blogs on niches ranging from health, travel, beauty, and relationships. Since 2019 I have written over 7,000 pieces of news articles and blogs for notable platforms like SportsKeeda and ICA UK. I have developed content strategies, ghostwritten blogs, and aided business communication from small startup businesses to big business platforms like PNC Digital. With strong research skills and fast typing capabilities, I can produce as many as 20 quality blogs a day with an average of 400 words per piece. This has enabled me to work on high-volume assignments without sacrificing the quality and delivering by tight deadlines. Copywriting and business writing experiences enhance my diversified skill set, making me a content professional for all intents and purposes. I'm proud that I can soak up information quickly, write a good story, and customize the content to meet many different needs writing about minute cricket analysis to a concise guide for travel. Need good content writing quality and speed? Let's work together! With over six years of experience and diversification in such niches, I can help you craft compelling content that drives results. Elevate your brand's voice today!