Despite IMF Loan, China Remains Country’s Lifeline

Pakistan will meet a dozen conditions in six months to stay in the $6 billion International Monetary Fund (IMF) programme but its economic endurance still hinges upon an $11 billion continued Chinese lifeline.

The international lender on Thursday released its staff level report of the $6 billion programme, confirming that the government was in process of increasing electricity prices by Rs5.65 per unit or 36% from now till October.

This increase will put an additional burden of Rs884 billion on the consumers by June 2023, according to the circular debt management plan, which the cabinet approved last month as part of the actions to meet the IMF conditions.

Additionally, the government will slap new taxes equal to 1.1% of GDP or around Rs600 billion in June as part of the IMF condition, according to the report. Read more…..