Inflation in Pakistan to Skyrocket as IMF Sets Tougher Targets

Pakistan is expected to see a massive rise in the inflation as the International Monetary Fund (IMF) has placed tougher structural benchmarks for the country under the implementation plan to qualify for the next loan tranches, amounting to $3 billion.

According to the details, the Washington-based lender has slapped eight more tougher targets on Pakistan in addition to a fresh deadline to meet the actions. The global lender has asked Pakistan to ensure electronically filed tax and asset details of bureaucrats, cabinet members, and the parliamentarians and make them available to the public.

Furthermore, it has asked the coalition government to end all subsidies granted during the Imran Khan-led government and increase the levy on petroleum products from Rs. 30 to Rs. 50. The report further stated that IMF wants Rs 855 billion to be collected from the people through petroleum levy.

Meanwhile, the government has also committed to reinstate the general sales tax (GST) on petroleum products. According to the report, a 10.5 percent GST will be levied on petroleum products, while electricity tariff will also be increased up to Rs. 26 per unit as per IMF demand.

Follow INCPAK on Facebook / Twitter / Instagram for update.