F.P. Report
ISLAMABAD: Pakistan has clinched the $3 billion deal with the International Monetary Fund’s (IMF) for sure but with some conditions that will certainly further burden the people who are already rattled by the record-breaking inflation.
So the government is expected to raise the electricity and gas tariffs before the IMF Executive Board’s meeting scheduled by July 12. Why? To meet the targets set by the world’s top lender and ensure that there is no hiccup as the IMF Executive Board will give final approval to the Stand-by Arrangement (SBA) between the two sides.
And this increase is nothing small – Rs3.50 hike in the per unit base price of electricity and 45 to 50 per cent hike in the gas tariff.
It will certainly be a painful measure for the masses, triggering a chain reaction when it comes to the inflation that is already touching the unbearable level for an overwhelming majority.
The latest SBA replaces the previous agreement known as Extended Fund Facility (EFF) which remained incomplete. It is nothing new as Pakistan has only once completed any agreement with the IMF which happened during the previous tenure of PML-N when Nawaz Sharif was the country’s prime minister.
Since independence, Pakistan has reached the IMF 23 times – second only to Argentina in the world, which entered into a deal with the top financial institution on 24 occasion.
