Pakistan was hopeful of getting over a $1 billion tranche from the International Monetary Fund by Tuesday after meeting all the requirements of the global lender, Miftah Ismail, finance czar announced on Friday.
“The IMF executive board meeting would be held on Monday or Tuesday night,” he said while addressing a press conference which centred around the fuel adjustment charges relief, finances from friendly countries and floods relief fund.
The IMF Executive Board meeting for the combined seventh and eighth review under the Extended Fund Facility has been set for August 29. The board was expected to approve a tranche of $1.17 billion for Pakistan after it fulfilled all conditions.
“We have met all IMF targets and meet the $4 billion gap,” Miftah said, adding that Qatar has approved at least $3 billion of investment in Pakistan and hailed it as a positive development.
He quashed rumours pertaining to selling PIA owned The Roosevelt Hotel in New York to the Gulf state, stressing that the friendly has shown interest in long-term lease and management control of airports. Secondly, it has also expressed interest in seaport and LNG plants. Fourth, Qatar has an interest in large-scale solar plants. The government has planned to set up 8,000MW solar plants.
Lastly, the state was also planning to buy companies in the share market in Pakistan. The UAE has announced their decision to invest $1 billion in Pakistani government shares.
Electricity shares
The IMF has asked Pakistan to increase the electricity rate, resulting in an increase in charges for July and August bills. He added that the electricity produced in May was very expensive, the actual fuel charges were Rs16 against the anticipated Rs6.
Miftah said Pakistan produced 25,000MW of electricity on a day when the demand reached 30,000 in the peak season of May. The government had run all plants to meet the end.
He explained that the government was able to convince the IMF after long discussions to exempt consumers below 200 units from the fuel adjustment charges. And, it has waived 56% (which amounts to 1.71 users out of a total of 30 million) of consumers from FCA.
The premier has formed a committee for providing relief to consumers of 200 to 300 units.
