Pakistan and the IMF are inching towards formal revival of the stalled Fund programme, as the government has decided to hike power tariff by 25-30 percent and to abolish up to Rs200 billion corporate sector income tax exemptions.

The top political leadership has given go-ahead to the economic team to fulfill all the required prerequisites for revival of the stalled programme under $6 billion Extended Fund Facility (EFF).

“The power tariff will be hiked in a gradual manner up to 25 to 30 percent in a bid to fulfill the IMF condition,” top official sources confided to this correspondent. The IMF program stalled in February 2020 after the COVID-19 outbreak. The second review is now under completion and it is yet to be seen whether the second and third reviews will complete simultaneously or these will be done separately. The IMF and FBR teams held a virtual crucial round of talks last Monday night and both sides explored the possibilities of abolishing the corporate sector income tax exemptions.

https://www.thenews.com.pk/print/762999-pakistan-imf-inching-towards-stalled-programme