Pakistan and the International Monetary Fund (IMF) met virtually to discuss the total losses in the energy sector, with the government committing to revise fuel prices and quarterly tariffs in order to curb the menace of circular debt.
Local media reported today that Pakistan has sent an amended Circular Debt Management Plan to the IMF, for which the baseline tariff has already been raised. The FAP and quarterly tariff adjustments would now be revised upward to reduce the circular debt.
During the meeting, the IMF team highlighted their reservations about the management plan’s long-term viability. The government has been tasked with devising an effective strategy to address this issue.
The meeting was held at technical levels, and the newly appointed Minister of Finance Dr. Shamshad Akhtar, is tipped to get in touch with the IMF team in the coming weeks to discuss the matter further.
It bears mentioning that the IMF delegation is scheduled to carry out its first review under the $3 billion Standby arrangement in October or November 2023, based on official macroeconomic results for the current fiscal year’s first quarter (July-September).
Source: Pro Pakistani