ISLAMABAD – Pakistan government will generate Rs 170 billion extra taxes inFY 2018-19 through electricity tarrif hikes and taxation measures.
Pakistan has assured the IMF of notifying Nepra’s determined tariff ofhiking the electricity rates by Rs1.27 per unit soon, taking additionaltaxation measures to fetch Rs170 billion and placing flexible exchange ratewith gradual adjustments of rupee against dollar in order to strike stafflevel agreement with the Fund for seeking fresh bailout package, The Newshas learnt.
Pakistan will have to request to the IMF for maximum quota facility of 435percent equivalent to over $12 billion as Islamabad has to pay backoutstanding liabilities of around $6.4 billion over next three years so netfinancing availability under 36 month facility will be standing between $6to $7 billion.
Differences still persisted over pace of adjustments on fiscal and monetaryfronts even after holding video conference between Pakistan and the IMF onWednesday night, however, both sides agreed to continue more round ofparleys in weeks ahead.
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An IMF mission may visit Islamabad after mid of next month in a fresh bidto evolve consensus for agreement on Memorandum of Economic and FinancialPolicies (MEFP) which will pave the way for signing Letter of Intent (LoI)by Federal Minister for Finance Asad Umar and SBP Governor Tariq Bajwa.
