The International Monetary Fund’s (IMF) payout of $1.2 billion under the recently authorised $3 billion bailout accord, the National Electric Power Regulatory Authority (NEPRA) is planning to raise the energy base tariff for the current fiscal year 2023–24.
Govt set to hike power tariff:. According to sources with knowledge of the situation, the regulator will increase the power base cost by Rs4.96 per unit. They add that the federal cabinet would make the ultimate decision about the hike in power tariff. “The power regulatory authority will forward its decision to federal cabinet today,” they state.
For a new base rate, NEPRA had previously established three options: below Rs. 8 per unit, below Rs. 7 per unit, and below Rs. 6 per unit. The base pricing increase of up to Rs. 5 per unit was already decided.
“Govt probably going to give a mini-budget”
The International Monetary Fund (IMF) has requested that Pakistan provide a plan for ‘improved tax’ collection from the real estate and agricultural sectors, indicating the expectation for Pakistan to present a mini-budget.
Furthermore, In preparation for the second review of the $3 billion Stand-By-Arrangement (SBA), the foreign lender has requested a strategy for improved tax collection.
According to sources with knowledge of the situation, the IMF is pressuring Pakistan to improve tax collection from the real estate and agricultural sectors after boosting the tax ratio.
According to sources, the next administration will make the decision on whether to impose taxes on the real estate and agricultural industries. If approved by the Federal Board of Revenue (FBR), the IMF proposal is likely to result in the implementation of a mini-budget.
IMF bailout
Additionally, On Thursday, the International Monetary Fund gave Pakistan the first installment of $1.2 billion for the SBA program.
However, Dar stated that there would be two installments and that the remaining $1.8 would be revealed after two reviews.
After signing the staff-level agreement last month, the International Monetary Fund (IMF) recently approved a $3 billion loan for Pakistan.