Expressing concern over rising inflation, dependence on one-off inflows like $1.5 billion Saudi grant and a couple of other slippages, the International Monetary Fund has put in place six new structural benchmarks (including two modifications) to monitor Pakistan’s macroeconomic performance for disbursement of next tranche.
In its report on third review of the Pakistan’s performance under extended fund facility, the IMF has set four new structural benchmarks and modified two earlier benchmarks because of the government’s inability to deliver on promises.
On its part, the government committed to imposing a new surcharge on electricity consumers to recover Rs240bn term finance certificates, in addition to about Rs150bn further reduction in power sector subsidies during the current fiscal year and a four per cent increase in tariff to be approved by the regulator. It committed to set a new deadline for selling majority stakes in Pakistan International Airlines (PIA) by December this year although it missed deadlines on privatisation and restructuring of PIA and Pakistan Steel Mills (PSM) in March and then in June.
