ISLAMABAD: Pakistan has to implement strict conditions agreed with the IMF under the loan program.
Pakistan has introduced financial management reforms including revising the NFC award formula and bringing the agricultural sector, property sector and retail sector into the tax net under the loan program approved by the International Monetary Fund (IMF) Executive Board. Other measures have been agreed upon.
In this regard, the sources of the Ministry of Finance say that the condition of the IMF is that Pakistan will review the NFC award formula and the IMF will also monitor the expenditure of the provincial governments.
According to the sources, the strict conditions of the IMF loan program include that in the future, no relief will be given on electricity prices in the style of the Punjab government, Pakistan will not issue supplementary grants during the IMF program and the agricultural sector, It will bring the property sector and retail sector into the tax net.
According to the sources, a new national finance agreement will be made between the federation and the provinces under the terms of the IMF program, which is being negotiated, in addition to the IMF’s condition that Pakistan should allocate one percent of its GDP to the energy sector. will not give more than subsidy.
Sources say that reforms will be made to reduce electricity prices while the government will bring a comprehensive package to reduce electricity prices. The conditions also include that support prices for food grains will not be fixed and the structure of the federal government will be reduced.
