IMF sets tough conditions for Pakistan to revive $6 billion loan facility: Report

The IMF has also asked Pakistan to set up an anti-corruption task force to review all the existing laws that were aimed at curbing graft in the government departments, the report said.

The International Monetary Fund (IMF) has set tough preconditions such as hiking electricity tariffs and imposing a levy on petroleum products to revive the stalled $6 billion bailout package to Pakistan, media reports said on June 29, days after the cash-strapped countrystruck a deal with the global lender on the much-needed loan facility.

The IMF has also asked Pakistan to set up an anti-corruption task force to review all the existing laws that were aimed at curbing graft in the government departments, the reports, quoting sources as saying.

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After implementing the conditions, the IMF would present Pakistan’s request for the approval of the loan tranche and revival of the programme to its executive board – a process that may consume another month, the Dawn newspaper reported.

The new conditions set by the IMF includes increasing electricity tariffs, the Cabinet taking the decision to gradually impose Rs. 50 [Pakistani Rupee] per litre petroleum levy to collect Rs. 855 billion and ending the government’s role in determining the oil prices, The Express Tribune newspaper reported.

The demands came amid the government’s decision to seek the National Assembly’s approval on Wednesday to amend the Petroleum Products (Petroleum Levy) Ordinance, 1961.

The law is proposed to be amended to slap Rs. 50 per litre petroleum levy on high-speed diesel, petrol, high octane blending component (HOBC), E-10 gasoline, superior kerosene oil and light diesel. It has also proposed Rs. 30,000 per metric tonnes liquefied petroleum gas levy.