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The International Monetary Fund (IMF) has provided lists of necessary steps and made it clear to Pakistani authorities that Islamabad must move forward with completing all conditions in order to restart the halted Fund project, emerged on Tuesday.
IMF has asked Pakistan to take all required actions that could pave the way for striking a staff-level agreement and releasing of $1 billion tranche under the Extended Fund Facility (EFF), ARY News reported citing sources.
“The IMF has sought a roadmap from Pakistan for the collection of Rs855 via petroleum levy till June 30, 2023. The Pakistani authorities have to jack up levy on diesel by Rs15/liter and drag it to Rs50/liter.” The report said.
The IMF has also sought settlement of circular debt in the gas sector for the revival of the stalled loan program, the sources said and added Pakistan has to jack up the gas price up to 74% to fix the debt.
Meanwhile, Minister of State for Petroleum Musadik Malik Tuesday said on that the government will have to increase the price of gas.
In a Senate meeting, he claimed that Pakistani gas prices were currently “unsustainable.”
“Discussion is ongoing to decide the magnitude of the gas price increase,” he stated. The government is unable to offer people additional gas connections at this time.”
The minister’s remarks come as the IMF’s 9th review, which must be passed before the next tranche of cash can be sent to Pakistan, has been on hold since September. With its central bank’s foreign reserves reaching a crucial threshold of less than $4.5 billion, the nation is in a grave economic crisis.
Pakistan’s power regulator has already allowed Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company (SSGC) to hike rates up to 75%, subject to cabinet approval.
