ISLAMABAD (WS News) – After conforming to the International Monetary Fund’s (IMF) 22 conditions under the latest Extended Fund Facility (EFF) worth $7 billion, Finance Minister Muhammad Aurangzeb and State Bank of Pakistan Governor Jameel Ahmad signed the agreements between Pakistan and the global lender.
Under these agreements, Pakistan has concurred to reduce all the concessions given to the Special Economic Zones (SEZs). The government will carve out a plan in this regard till June 2025. By 2035, all concessions will be taken back from the SEZs.
The government has also agreed to approve changes in gas tariffs by December 2024 while it will impose five percent excise duty on fertilisers and pesticides.
For reforms in civil service, the government will make necessary amendments to the Civil Services Act by 2025 to keep digital records of top bureaucrats with digital profiling.
In order to reach net zero circular debt, the government will bring reforms by cutting power expenses through timely increases in the electricity rates and targeted subsidy.
The IMF has given a caveat to the government that Pakistan’s external financing gap problem will not be resolved if it didn’t act strictly on the policies shared by the international lender.
