IMF opposes additional power sector subsidy

The IMF has urged Pakistan not to provide additional subsidies to the power sector in the federal budget for the upcoming fiscal year 2025-26, sources told The Express Tribune on Saturday.

The IMF has linked its support to achieving the primary budget balance target by increasing revenues rather than expanding expenditures. The Fund has raised concerns that rising expenditures could derail efforts to meet the primary balance target.

According to the sources, the global lender is pressing the government to empower the energy ministry to take effective measures to halt the accumulation of circular debt.