An IMF mission is currently in Pakistan holding talks after which a staff-level agreement is expected between the two sides.
By India Today Web Desk: The International Monetary Fund (IMF) on Thursday rejected Pakistan government's circular debt management plan and asked the authorities to raise the electricity tariff by Rs 12.50 per unit as talks begin on a potential bail out.
The electricity tariff raise is to restrict the losses of the cash-bleeding power sector, a report said.
An IMF mission is currently in Pakistan holding talks after which a staff-level agreement is expected between the two sides.
During the second day of technical-level talks, the Washington-based lender termed the revised CDMP as “unrealistic”, which is based on certain "wrong assumptions".
The newly developed debt management plan seeks to restrict losses of power distribution companies to 16.27% on average during the current fiscal year, Geo News reported.
Prime Minister Shehbaz Sharif was against the tax rises and subsidy slashing demanded by the International Monetary Fund, fearful of backlash ahead of elections due in October. But in recent days, with the prospect of national bankruptcy looming and no friendly countries willing to offer less painful bailouts, Islamabad has started to bow to pressure.
