Pakistan is facing significant difficulties in meeting five crucial targets set by the International Monetary Fund (IMF) for receiving the second tranche of its loan, as reported by ARY News, citing informed sources.
According to sources, one of the major concerns is the privatization of DISCOs (Electricity Distribution Companies), which is expected to remain incomplete by January. Additionally, the goal of maintaining foreign exchange reserves equal to three months of import bills by March is also at risk.
The sources also highlighted that the revenue targets are unlikely to be achieved by December, while the implementation of agricultural income tax and the assets declaration program, both due in January, are facing delays.
There is also a significant possibility that the government will fail to impose the agricultural income tax by the January 1 deadline.
If these targets are not met, it could complicate Pakistan’s ongoing loan agreement with the IMF, making it more difficult to secure future loan installments. The sources indicated that more stringent measures would be required to access the third installment if the second tranche is disbursed under these circumstances.
Meanwhile, the government’s inability to reduce the petroleum levy has led to a sharp rise in fuel prices. High-speed diesel prices have increased by Rs 12.14 per liter, and petrol prices have gone up by Rs 5.07 per liter in the past six weeks.
Sources explained that although the government could have cut the levy to curb the price hikes, the IMF program’s restrictions have prevented this, resulting in the increased fuel costs.
