[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan is in talks with the International Monetary Fund (IMF) as a technical team from the IMF arrives in the country to discuss a new loan program.
Prior to the formal discussions, the PML-N government, led by Sharif, assured the IMF that there would be no introduction of new fuel subsidies or cross-subsidy schemes in FY24 and beyond. They also pledged to avoid netting out cross-arrears without thorough due diligence and independent auditing.
Read more: Pakistan Petrol Prices Set For Significant Decrease
The circular debt stock stabilized towards the end of 2023 and the beginning of 2024, thanks to efforts to align energy tariffs with costs and ongoing measures to combat theft in the power sector.
Pakistan implemented a significant increase in gas tariffs on February 15 and is progressing towards meeting its circular debt management plan target for FY24. However, further reforms are needed to restore the viability of the energy sector, including improving transmission infrastructure, enhancing the performance of DISCOs, and converting PHPL debt into public debt.
The IMF emphasized the necessity for regular adjustments to energy tariffs and broader reforms to ensure the viability of the energy sector. While Pakistan’s current tariff structure protects vulnerable consumers, the IMF suggests transitioning to cash transfers in the long term.[/vc_column_text][/vc_column][/vc_row]
