Pakistan IMF News: Tax bomb, petrol, record electricity prices… on what conditions Pakistan agreed to beg from IMF, know – pakistan economic crisis explained what has pakistan agreed so far with international monetary fund
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1- Pakistan government will increase tax and implement other fiscal measures to raise revenue of Rs 170 billion
2- The exchange rate of foreign currency will be decided according to the market. At present, the government of Pakistan has abolished the lower circuit that fixed the value of the dollar.
3- The government’s existing commitments to increase petroleum duty will be met. Diesel duty will be increased twice by Rs 5 per liter each on March 1 and April 1.
4- IMF’s suggested energy reforms will be discussed and approved in Pakistan’s cabinet. This would involve Pakistan reducing its circular debt completely. Circular Debt – A form of public debt that builds up due to subsidies and outstanding electricity bills. It will not be necessary to completely eliminate this circular debt immediately.
5- Pakistan will not take any circular debt related to gas.
6- Subsidy will be reduced to the minimum.
7- The budget for the Benazir Income Support Program will need to be increased by 40 billion rupees, from 360 billion rupees to 400 billion rupees, in order to ease the burden of inflation on the most vulnerable sections of society.
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