The government had virtual negotiations with the IMF regarding the reduction of electricity rates and ongoing protests in the country. In these talks, Pakistan requested relief in taxes imposed on energy.
In response to Pakistan’s request, IMF authorities made it clear that bills must be paid in full. The International Monetary Fund also demanded a written response from the government on how they plan to meet tax targets if subsidies are given on electricity.
On the other hand, Finance Minister Shamsad Akhtar, after participating in the Senate Standing Committee meeting on energy, spoke to media representatives and said that the situation is worse than estimated; due to the lack of flexibility, subsidies cannot be given.
She further stated in the Senate Committee briefing that if action is not taken on the IMF program, the situation will become very difficult. The losses of government institutions have reached an intolerable level, and the process of downsizing will have to be accelerated.