IMF urges Pakistan to hike tariffs, remove subsidies for economic recovery

ISLAMABAD: The International Monetary Fund (IMF) has criticised Pakistan’s approval of the budget for the fiscal year 2024-25, describing it as insufficient and calling for more stringent measures.

The National Assembly (NA) greenlit the Federal Budget with a total allocation of Rs18,870 billion during its session yesterday.

IMF sources have indicated a pressing need for Pakistan to raise electricity and gas tariffs starting from July 1, and to promptly execute the NEPRA decision on tariff adjustments.

Additionally, the IMF has insisted on the elimination of tax exemptions and subsidies, labelling these measures as crucial for Pakistan’s economic recovery.

Despite its reservations, the IMF has commended the government for its tough economic stance reflected in the budget, particularly applauding the reduction of tax breaks and subsidies, as per informed sources.

Furthermore, the IMF’s planned visit to Pakistan, originally scheduled for the last week of June, has been postponed. Sources suggest that the IMF delegation is now expected to arrive in the country during the second week of July.

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