The news stringent conditions of the International Monetary Fund (IMF) loan program for Pakistan have come to light, with demands for further reforms through the Ministry of Finance.
According to sources, Pakistan is expected to revise its National Finance Commission (NFC) award formula and bring sectors like agriculture, property, and retail into the tax net.
The IMF will closely monitor provincial government spending, and discussions between the Federation and provinces on the National Finance Pact are ongoing.
Additionally, the government will not be allowed to subsidize the energy sector beyond 1% of GDP, nor issue supplementary grants during the IMF program.
Reforms aimed at lowering electricity costs are also in the pipeline, including revisions to power purchase agreements. Furthermore, Punjab will no longer offer relief on electricity prices, and the support prices of food grains will not be determined.
The federal government will also undergo structural reductions as part of broader efforts to stabilize the economy under the IMF’s watchful eye.
These measures are part of a comprehensive plan to improve Pakistan’s fiscal health and reduce reliance on subsidies.
