International Monetary Fund (IMF) on Tuesday asked the government of Pakistan to withdraw subsidy on flour, ghee, pluses, rice, gas and electricity.
According to sources, talks between Pakistan and the IMF will begin in October, while the IMF has demanded to withdraw subsidies and establishment of financial discipline.
The international lender said that the subsidy on flour, ghee, sugar, pulses and rice should be abolished and targeted subsidy should be given only to those involved in the Ehsaas program.
The talks will focus on Pakistan s economy, achievement of targets, subsidies, tariffs and revolving credit situation.
On Monday, in a meeting with the representatives of the international lending agency International Monetary Fund (IMF), Minister for Finance and Revenue Shaukat Tarin expressed the incumbent government’s unwavering commitment to the fund’s extended fund facility (EFF) programme, and hoped to successfully complete the upcoming review as well as Article IV consultations.
Tarin informed the visiting personnel of the steps the Imran Khan led government is taking to pursue a sustainable and all-inclusive economic growth through a bottom-up approach. The bottom-up approach is aimed at lifting the economically vulnerable and marginalized strata of Pakistani society.
The measures being taken by the ruling party to shield the populace from the prevalent economic conditions were also mentioned by Tarin. “The government is taking a range of administrative, policy and relief measures to absorb the upward pressure on prices of basic food commodities due to the pandemic,” Tarin was quoted as saying.