Increase electricity rates, tax base: IMF tells Pakistan

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The International Monetary Fund (IMF) has approved the second tranche of 550 million dollars to Pakistan under the 6.6 billion dollar loan programme but has also handed over a list of demands. The IMF has demanded from the Pakistan government to increase the price of electricity in the country and directed that its impact should not be felt on the underprivileged. According to the Acting head of the IMF Executive Board Nemat Shafiq, electricity rates would have to be increased in Pakistan to take pressure off the government incurred due to the subsidy. Shafiq further said that reforms in the energy sector should continue. Shafiq added that problems in the tax collection system should be resolved and measures should be taken to increase the tax base in Pakistan.