The terms and conditions of the International Monetary Fund (IMF) loan programme have emerged, The Asian Mirror reported on Thursday.
Sources claimed that Pakistan will emend the NFC award formula, adding that the IMF will monitor the spending of provincial governments.
According to the insiders, a new national finance pact will be made between the Federation and the provinces, and deliberations are ongoing.
Pakistan will not subsidize the energy sector more than 1% of GDP per the IMF conditions, the sources said, adding that Pakistan will not issue supplementary grants during the programme.
Also read: Punjab CM’s electricity relief package for Islamabad ends under IMF pressure
They said that Pakistan will bring agriculture, property and retail sectors into the tax net while reforms will be mandatory to reduce electricity prices.
The government will bring a comprehensive package to reduce electricity prices and the power purchase agreements are being revised while in the future, no relief will be given on electricity prices like the Punjab government provided to the people.
Support prices of food grains will not be fixed and the structure of the federal government will be reduced, the sources added.
The International Monetary Fund is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C.
