In a virtual conference, Dr. Shamshad Akhtar, the Caretaker Finance Minister, engaged in discussions with IMF representatives covering topics such as exchange rates, the revolving credit situation in the power and gas sectors. Insider information reveals that Dr. Shamshad Akhtar apprised the IMF about the adoption of a market-driven exchange rate approach.
Additionally, the minister revealed that tariff rates have been raised to tackle the persistent debt cycle within the power sector. The goal is to cap the revolving debt in the power sector at 2.128 trillion by June 2024, and this will involve phasing out subsidies. A pre-agreed strategy was deliberated with the IMF to effectively curtail the revolving credit.
Assurances were provided by the caretaker finance minister regarding the adherence to agreement terms. IMF officials emphasized stringent compliance with these terms, to which the finance minister committed to their complete implementation well in advance of the upcoming economic review.
