Pakistan is likely to fail in achieving five key targets set by the International Monetary Fund (IMF) for the disbursement of the second tranche of loan, ARY News reported, citing sources on Wednesday.
As per sources, one of the primary concerns of Pakistan is the privatization of DISCOs, which is feared to remain incomplete by January. The target to maintain foreign exchange reserves equivalent to three months of import bills by March is also at risk.
The well-placed sources told ARY News that revenue targets are unlikely to be met by December, while agricultural income tax and the assets declaration program, due by January, are also facing delays.
The Pakistan government is also at risk of failing to meet the condition of imposing agricultural income tax by January 1.
Failure to meet the targets could complicate the current IMF loan program, making it more difficult to proceed with subsequent loan installments, sources said.
If the targets remain unmet, tougher measures will be necessary to secure the third installment after the second.
Meanwhile, the government’s inability to reduce the petroleum levy has resulted in a significant increase in petroleum prices, with prices rising by Rs 12.14 per liter over the past month and a half, sources said.
According to sources, the price of high-speed diesel has increased by Rs 12.14 per liter since October 16, while the price of petrol has risen by Rs 5.07 per liter during the same period.
The government has increased the price of high-speed diesel three times and petrol twice over the past month and a half. According to sources, the government could have reduced the levy to prevent the price hike, but the IMF program restrictions prevented it, sources revealed.