Pakistan has received a list of additional conditions from the International Monetary Fund (IMF), with a key demand being a commitment to raise electricity and gas prices. The IMF has emphasized the importance of amending laws related to special economic zones as part of the conditions. The government is urged not to backtrack on its pledge to increase energy prices, even if it affects struggling production units.
The Finance Minister of Pakistan, during discussions in Washington, DC, agreed to phase out existing fiscal incentives under the Special Economic Zones (SEZ) Act and the Special Technology Zones Authority (STZA). Additionally, the minister agreed to eliminate privileges for granting tax incentives and restrict export processing zones from selling goods in the domestic market. These measures are seen as crucial by the IMF for Pakistan’s economic reforms.
The IMF’s conditions, totaling 75 including 11 new ones, are tied to the $7 billion bailout package under the Extended Fund Facility for Pakistan. These conditions are aimed at correcting Pakistan’s approach to decision-making, governance, and private sector development. The IMF emphasizes the need for stringent reforms to address the country’s reliance on borrowed funds and move towards a more structured economic framework.
