Sources claim that starting in August, the IMF is planning to raise gas prices for the domestic, fertilizer, CNG, and cement industries. Protected and non-protected consumers would see increases ranging from Rs 100 to Rs 400 per month.
Tandoors included, the IMF does not recommend raising the price of gas for commercial users.
According to the sources, three strategies have been presented to the IMF to minimize circular debt in the gas sector. A dividend system has also been discussed as a means of achieving this objective.
Furthermore, the IMF has suggested raising gas prices for plants that fertilize land.
The sources went on to say that there is an understanding reached regarding promptly providing the IMF with data regarding tariffs, reforms, and subsidies.
A tax on monthly pensions over Rs 100,000 was previously sought by the International Monetary Fund mission to Pakistani authorities.
The IMF delegation ‘requested’ Pakistani authorities to raise the general sales tax (GST) to 18% prior to this demand.
The Pakistani sales tax collection system is having issues, according to the IMF mission, since the provinces are collecting sales tax on services while the center is collecting sales tax on commodities.
They recommended the federal government should be the single entity in charge of collecting sales taxes. According to the reports, the foreign lender also insisted on raising the GST rate from 18% to 20% on goods and services.
In the fourth round of negotiations, the mission also required Pakistan to create a new regulatory body and implement reforms in the insurance sector. The fund also called for the sale of three insurance businesses that were held by the government.
The reason the IMF delegation is in Pakistan right now is that Islamabad wants to participate in another program offered by the international lender to help with the funding shortfall.
