Gas, electricity prices to be increased gradually: Asad Umar

ISLAMABAD: Finance Minister Asad Umar has said gas and electricity prices will increase gradually as subsidies are withdrawn.

Talking to media persons, Asad Umar said the government subsidy on gas and electricity will not be withdrawn together.

Meanwhile, the newly-appointed International Monetary Fund (IMF) mission chief in his introductory meeting with Pakistani authorities Tuesday received briefings on different sectors of the economy and discussed possibility of $12 billion bailout package from the Fund. Now Minister for Finance Asad Umar will lead Pakistani delegation for participating into upcoming annual spring meeting of the IMF/WB in Washington DC from April 10 to 12.

On the sidelines of upcoming annual meeting of Breton Wood Institutions (BWIs) such as the IMF/WB, the expected breakthrough for dispatching review mission of the IMF to Islamabad would be undertaken probably by third week of next month. The size of the programme will be finalised during the mission talks but it is expected that Pakistan will request $12 billion to the IMF. Out of $12 billion, Pakistan will have to pay back around $6 billion to the IMF on account of last loan obtained during the PML-N-led regime so net financing from the IMF would be standing at the remaining $6 billion.

When contacted, the Ministry of Finance spokesman Dr Khaqan Najeeb said that it was introductory meeting in which both sides discussed wide range of talks starting from economy, FBR collection, energy sector and others. Now the IMF team will hold discussion on exchange rate and other issues related to State Bank of Pakistan on today (Wednesday). However, he made it clear that no target on account of exchange rate came under discussion.

According to the Finance Ministry’s official statement, Asad Umar met the IMF Mission Chief Ernesto Ramirez Rigo in Islamabad on Tuesday.

The minister and the mission chief discussed all issues including fiscal, monetary, structural reforms and energy sector. The minister briefed Ramirez Rigo about the steps taken by the government for improving economy of the country. The minister informed that the structural reforms and other economic initiatives introduced by the government were yielding desired results.

Asad Umar said that the government would continue to address the macroeconomic imbalances and would take necessary corrective measures in this regard.