Pakistan Economics down for surrenders to another IMF demand 2023

 

Pakistan Economics down for surrenders to another IMF demand 2023

ISLAMABAD:Pakistan Economics down for surrenders to another IMF demand 2023: In a bid to revive a loan program aimed at stabilizing its sagging economy, Pakistan conceded Wednesday to a request by the InternationalMonetary Fund (IMF) to impose additional electricity charges on consumers in the next economic year.

Pakistani officials are baffled by the IMF's "shifting targets" as the country makes frantic efforts to lure the lender, which has set new conditions for the $6.5 billion expanded financing facility (EFF) signed in 2019.

The cash-strapped country is taking key steps to secure a $1 billion tranche from the IMF under the ninth review of the EFF. These measures include tax increases, removal of one-time subsidies and artificial exchange rate restrictions.

Pakistan Economics down for surrenders to another IMF demand:Yielding to another IMF request, the Economic Coordination Committee (ECC), which met under the chairmanship of Finance Minister Ishaq Dar, approved the introduction of a surcharge on electricity of up to Rs. 3.82 per unit between March and June 2023.

The surcharge of Rs 2.63 per unit on average will continue to be levied on electricity consumers in the next fiscal year 2023-24 to meet another stringent condition imposed by the IMF to revive the stalled program.Pakistan Economics down for surrenders to another IMF demand:

This surcharge will also apply to K-Electric consumers.

Tariffs For K-Electric Consumers

The CEC approved a tariff rationalization for K-Electric with an adjustment for consumption from July 2022 to September 2022 and a recovery from consumers from March 2023 to May 2023, respectively.

It also approved higher surcharges for FY 2024 to cover the federal government's obligations to power generators.

These surcharges for FY 2024 will also be applied to K-Electric consumers to maintain uniform rates across the country.

A tariff hike of Rs 1.55 per kWh for domestic consumers for the second quarter of 2021-22 and another hike of Rs 1.4 per kWh to Rs 4.45 per kWh for the first quarter of 2022-23, depending on the usage of appliances.Pakistan Economics down for surrenders to another IMF demand:

Ramadan Assistance Package

KEC also approved a Rs 5 billion Ramazan assistance package through the Utility Stores Corporation, based on a hybrid model of targeted and untargeted subsidies.

The package, proposed by the Ministry of Industry and Manufacturing, will cover 19 items available in stores across the country.

It also calls for the removal of storage fees for containers blocked due to non-receipt of letters of credit and currency transfers.

The authority reviewed the summary submitted by the Ministry of Food Security and National Research on the purchase price of wheat