Last Updated on: 17th November 2023, 01:01 pm
Finance Minister Signals Upcoming Rise in January Electricity and Gas Prices
Certainly! The interim Finance Minister, Dr. Shamshad Akhtar, has indicated that there will be no relief for the public from high electricity and gas tariffs, as the caretaker government plans to increase these utility prices in January. This move is in line with the government’s commitment to lowering costs in the energy sector and addressing the circular debt in power and gas, which has exceeded 4% of the GDP.
Dr. Akhtar discussed potential tariff revisions and additional taxes on sectors like real estate and retail in talks with the IMF. The government is seeking a fresh short-term IMF program for macroeconomic stability, with hints of a medium-term program under the Extended Fund Facility. Finance Secretary Imdad Bosal is optimistic about a successful IMF review unlocking loans from various multilateral lenders.
Also Read: IMF Approves Easements in Paying Electricity Bills
Dr. Akhtar anticipates disbursements from the World Bank and expects an increase in foreign exchange reserves after the approval of an IMF tranche. The caretaker government’s efforts to stabilize the economy include initiatives such as a $3 billion IMF program and the Special Investment Facilitation Council to expedite investments in critical infrastructure.