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The IMF demands that Pakistan “increase” gas prices.

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6 months ago

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Sources claim that starting in August, the IMF is planning to raise gas prices for the domestic, fertilizer, CNG, and cement industries. Protected and non-protected consumers would see increases ranging from Rs 100 to Rs 400 per month.

Tandoors included, the IMF does not recommend raising the price of gas for commercial users.

According to the sources, three strategies have been presented to the IMF to minimize circular debt in the gas sector. A dividend system has also been discussed as a means of achieving this objective.

Furthermore, the IMF has suggested raising gas prices for plants that fertilize land.

The sources went on to say that there is an understanding reached regarding promptly providing the IMF with data regarding tariffs, reforms, and subsidies.

A tax on monthly pensions over Rs 100,000 was previously sought by the International Monetary Fund mission to Pakistani authorities.

The IMF delegation ‘requested’ Pakistani authorities to raise the general sales tax (GST) to 18% prior to this demand.

The Pakistani sales tax collection system is having issues, according to the IMF mission, since the provinces are collecting sales tax on services while the center is collecting sales tax on commodities.

They recommended the federal government should be the single entity in charge of collecting sales taxes. According to the reports, the foreign lender also insisted on raising the GST rate from 18% to 20% on goods and services.

In the fourth round of negotiations, the mission also required Pakistan to create a new regulatory body and implement reforms in the insurance sector. The fund also called for the sale of three insurance businesses that were held by the government.

The reason the IMF delegation is in Pakistan right now is that Islamabad wants to participate in another program offered by the international lender to help with the funding shortfall.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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2 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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