The technical negotiations during the review mission between the IMF (International Monetary Fund) and Pakistan have ended and the IMF has demanded Pakistan to increase electricity and gas tariffs, to impose 18% GST on petroleum.
The IMF has also called for limiting state intervention in the economy through privatization and regular audits of public institutions.
Apart from this, the IMF has demanded the elimination of corruption, red tape, ease of business and tax culture, privatization of many institutions including LNG power plants, house building finance.Further, the International Monetary Fund has emphasized on reducing the losses of PIA, steel mills and other institutions and has said that institutional deficiencies should be removed for economic development, investment, employment. Pakistan and the IMF will now hold talks at the policy level.
It should be noted that the IMF delegation is negotiating with the Pakistani authorities in Islamabad these days, after which the IMF program for Pakistan will be decided.