Govt decides to reduce gas sector circular debt on IMF demand

The federal government has resolved to lower the gas sector’s circular debt in response to IMF demand.

The federal government has decided to lower the circular debt of the gas sector from Rs1,600 billion to Rs1,200 billion. According to sources, the finance and energy ministries created a strategy to reduce circular debt, which was also discussed with the IMF.

Following the proposal’s approval, the monies will be distributed by the appropriate authorities.

Furthermore, it was learned that Finance Minister Senator Ishaq Dar wished to minimize circular debts in the gas industry by the end of next week.

Earlier, the finance minister delivered to the National Assembly (NA) documents relevant to the Pakistan-IMF deal, assuring that no new levies will be placed on the agriculture and construction industries.

Dar had also invited parliamentarians to submit proposals to the parliament for major policy changes. He also stated that the terms of the IMF deal were provided to the parliament and the public in order to maintain transparency.

He dismissed reports of increased levies on the real estate, construction, and agriculture sectors as rumors.

As details of the IMF-Pakistan agreement emerged earlier this month, the International Monetary Fund (IMF) pushed Pakistan to raise power and gas costs even further.

According to the specifics of the Pakistan-IMF agreement, Pakistan needs to tighten its monetary policy even more in order to reduce inflation in the country. The IMF also supported Pakistan’s interest rate hike.

It is worth noting that the IMF executive board authorised a $3 billion bailout financing programme after months of deliberation, improving Pakistan’s financial stability ahead of elections this year.

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