Negotiations between Pakistan and the International Monetary Fund (IMF) have taken a significant turn as the government assures the IMF of transparency in the operations of the Special Investment Facility Council (SIFC). This assurance comes amidst ongoing talks for a new bailout package, with an IMF mission currently conducting a two-week visit to Pakistan.
Sources close to the negotiations have revealed that the government has pledged transparency in the SIFC’s operations, emphasizing that investments will adhere to the Public Investment Management Framework. It has been underscored that there will be no preferential treatment in investment opportunities, incentives, or guarantees of returns within the framework.
Officials from the Ministry of Finance have reiterated to the IMF that the investment landscape in Pakistan will remain distortion-free, with transparency procedures aligning with international standards within the SIFC.
Additionally, the IMF has been assured of efforts to enhance the efficiency of the Central Monitoring Unit, signaling the government’s commitment to robust oversight and governance mechanisms.
Meanwhile, in a related development, the Ministry of Energy has communicated to the IMF its intention to increase the base tariff of electricity. This move suggests an impending rise in electricity prices nationwide, slated to come into effect from July 1.
The hike in basic electricity prices will be implemented following adjustments in the multi-year tariff by the National Electric Power Regulatory Authority (Nepra). The Ministry of Power has disclosed that consumers can anticipate a retail price surge of approximately Rs7 per unit.
Insider reports suggest that the minimum national average tariff is set to witness a substantial elevation from Rs29 to Rs36 per unit. While this adjustment is anticipated to impact all categories of electricity consumers, it is clarified that lifeline customers, benefiting from a subsidized tariff structure, will remain unaffected.
The developments underscore the government’s efforts to ensure fiscal discipline and transparency in economic policies, aligning with international standards and commitments to financial institutions like the IMF.
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