ISLAMABAD –IMF sets tough conditions for bailout package for Pakistan.
Setting tough conditions for a bailout package, International Monetary Fund(IMF) on Friday demanded the government to give State Bank authority ofdecisions regarding dollar rate and make National Electric Power RegulatoryAuthority (NEPRA), Oil and Gas Regulatory Authority (OGRA) independent.
As per the details, for a bailout package, the IMF while demanding Pakistanfor strict measures to increase tax income said that the target of taxshould be fixed at Rs5000 billion.
Sources privy to the finance ministry said that the IMF further demandedthe government to withdraw tax relaxation for the working class. The taxrelaxation should be brought down to Rs400,000 from Rs1.2 million.
The Fund further demanded to decrease electricity and gas losses.Government should not interfere in the decisions of National Electric PowerRegulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA).As many as Rs140billion outstanding of the electricity and gas should berecovered from masses.
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Earlier, talking to media in Washington, Finance Minister Asad Umar saidthat government was working on structural changes in the economy.
He said it has been decided in principle to start IMF mission and thedecision has been taken in the best interest of national economy.
The finance minister said IMF program will bring improvement in theeconomy, adding that IMF delegation will visit Pakistan in coming weeks tofinalize technical details.
