IMF Demands Another Gas Bomb to Slash Circular Debt

The International Monetary Fund (IMF) has demanded Pakistan to hit the general public with another gas bomb having only notified new natural gas sale prices earlier this month, well-informed sources told ProPakistani.

Sources said concerns have arisen over the escalating circular debt of the power sector, which has now reached 4 percent of the Gross Domestic Product (GDP). Sources revealed that the initial targets set for reducing this debt have not been met.

Consequently, the IMF has recommended a further increase in gas prices and limiting energy sector subsidies, in line with the lender’s repeated demands. Notably, any decision to this effect has not been taken yet.

Meanwhile, Pakistan and the IMF have worked together on a comprehensive privatization plan that focuses on privatizing state-owned entities (SOEs) that have been incurring substantial losses.

The move to privatize these entities is seen as a strategic measure to address the financial woes of these institutions. To determine the extent of these losses, the Central Monitoring Unit will undertake a meticulous evaluation, and the findings will subsequently be submitted to the IMF.

One of the major components of the privatization plan involves transferring control of power distribution companies to the private sector. This strategic shift is anticipated to curtail losses and enhance efficiency in the power sector, aligning with the IMF’s paramount demand for comprehensive reforms in the energy sector.

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  • During IK government it was always government dropping gas/petrol bombs. Now thanks to revenue from government it has become IMF for reporters

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