The mission is part of Pakistan's ongoing efforts to manage a complex path to economic recovery under the stewardship of a caretaker government, following the approval of an IMF loan program in July.
ISLAMABAD: (UrduPoint/Pakistan Point News-Oct 25th, 2023) An upcoming mission from the International Monetary Fund (IMF) is scheduled to visit Pakistan on November 2 to discuss the initial review of the country's existing $3 billion standby arrangement (SBA).
The IMF mission, led by Mr. Nathan Porter, will undertake this critical review of the current Stand-By Arrangement, according to Esther Perez Ruiz, the IMF's resident representative to Pakistan.
During this visit, the IMF is expected to place pressure on Islamabad to expedite the privatization of underperforming state-owned enterprises, including Pakistan International Airlines (PIA), the national flag carrier.
The mission is part of Pakistan's ongoing efforts to manage a complex path to economic recovery under the stewardship of a caretaker government, following the approval of an IMF loan program in July. This program played a pivotal role in averting a sovereign debt default, with Pakistan receiving the first tranche of $1.2 billion in July.
Recently, the Economic Coordination Committee (ECC) approved a significant increase in gas tariffs, a key condition set by the IMF in preparation for the forthcoming review that will determine when the second tranche of the $3 billion agreement will be disbursed.
The increase primarily affects non-protected consumers, who will see a rise of up to 194% in their monthly gas bills starting from November 1. Meanwhile, fixed monthly charges for non-protected consumers have been elevated from Rs460 to Rs1,000 for the first category of up to 1.5 hm3 and from Rs460 to Rs2,000 for the second category of 1.5 hm3.
The average sale price of RLNG witnessed a 3.8% increase in October as compared to September for the Sui Southern and Sui Northern regions, following a notification by the Oil and Gas Regulatory Authority (Ogra).
The government also raised local gas tariffs by 136.4% for commercial users, 86.4% for export-oriented industries, and 117% for non-export industries.
These adjustments are aimed at addressing the circular debt issue and countering the increased costs associated with imported regasified liquefied natural gas (RLNG), particularly in light of the depreciation of the national Currency.
