As part of the International Monetary Fund’s conditions for a bailout package, the government has agreed to increase the gas and electricity prices.
The final phase of talks between the government and IMF is going on and the government has already accepted a few of the Fund’s terms like raising the gas and electricity prices.
The government is asked by the IMF to impose Rs700 billion more in the taxes in the upcoming budget. But the government is ready to raise the taxes by Rs500 billion.
Under the new IMF terms, gas and electricity prices will be raised. In the next three years, the prices will get more expensive. It is expected that the government by levying these new taxes will collect an additional Rs340 billion.
On the memorandum of economic and financial policy, the IMF was given a briefing. Also, it was informed about the tariffs that can be altered every quarter. Oil and Gas Regulatory Authority (OGRA) is given free choice to approach NEPRA and the gas companies to raise the prices.
Subsidies for all consumers are being done with excluding the ones using under 300 units and industries. Once the terms are decided, the new state bank governor Reza Baqir will sign the agreement.