These benchmarks are the new reform measures introduced in regard to the approved IMF bailout programme. PHOTO: FILE
It includes 11 conditions:
• Pakistan should announce the gas tariff rationalisation plan by the end of this month. Revenue generated from this plan should equal 0.4% of Gross Domestic Product (GDP).
• In order to make the State Bank of Pakistan (SBP) sovereign a draft of the law should be presented.
• Pakistan has to make the Central Power Purchase Agency operational.
• Exemptions in income tax, sales tax, federal excise duty, custom duty through statutory regulatory orders (SRO) should be withdrawn by Pakistan. Steps for the additional revenue need to be taken.
• Pakistan will have to get the draft of Deposit Protection Fund Act ready by the end of September 2014 and then discuss it with the review mission of the IMF.
• Securities Bill draft should be prepared by Pakistan and shared with the IMF team as well.
• By June 2014 26% shares of Pakistan International Airlines (PIA) will have to be privatised.
• Amendment is required in the Pakistan Penal Code 186.
• Criminal procedures 1898 also require amendment.
• An independent and professional audit firm should be hired to audit the energy sector.
• 30 public firms, whose privatisation and restructuring strategy was approved in October by the Cabinet Committee on Privatization (CCOP), should be extradited.
Background
In November, IMF had called for linking the frequency and duration of power outages across Pakistan to the recovery of bills. This, the international lender believes, will discourage rampant power theft and non-payment culture in the country. Increasing power pilferage and non-payment of bills adds to the ‘circular debt’, which eats up the scarce public resources.
Sources familiar with the recent talks between the IMF and Pakistan had told The Express Tribune that the international financial institution had added a new structural benchmark in the $6.7 billion bailout programme.
COMMENTS (9)
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My Dear "The Failed Rebel" Your comments about Option 2 is misguided.Unless we make all National Institutions Sovereign,These Politicians will continue toto exploit these organisations for their personal sake.Look at the war Federal Governments continue to get loan after loan and keep getting Currency printed.This is happening because the State Bank is subservient to the sitting Government.Why do you think the Governments are not interested to make various institutions Autonomous? I am not financial expert but I feel all these recommendations by IMF are essential if we want to survive.Can you imagine the ratio of Tax payers in Pakistan.How do you expect to break the "KASHCOL".The Rich and Famous including the supra Bureaucrats of this country who enjoy the Perks at the cost of loans from IMF and other donor agencies.My dear Sir,We will only stand on our feet when someone will coerce us to change or else these stinking skunks will lead us to destruction.
@Hari Om: Would you mind your own business, please. Thanks
@Hari Om: You certainly know more about Pakistan than most of the Pakistanis do, it seems you have the Indian information machinery behind you and by the way you should know that we are critical of our government and ourselves, you don't need to spew venom at us at every chance you Indians get. Look into your own house, is it the land of milk and honey. I don't understand why you people are here to comment any way and why ET even allow you Indians to write nasty remark here and I have seen some very nasty remarks on these pages.
I was under the impression "NAWAZ SHARIF DOES NOT TAKE DICTATION"
IMF has certainly cracked the whip and imposed tough conditions on Pakistan.
This current Express Tribune article certainly rubbish’s the tall claims made in an earlier ET article titled “Bailout package: Talks with IMF on Pakistan’s terms, says Dar” and dated June 14, 2013:
“Talks will also be held for a programme but on terms and conditions of Pakistan,” said Dar. The IMF’s dictation will not be accepted, he added.
Article available at the below web link:
http://tribune.com.pk/story/563092/bailout-package-talks-with-imf-on-pakistans-terms-says-dar/
Y is IIMF dictating changes in Pakistan Penal Code?
Option two of SBP is not right in my opinion.
This mean the SBP is ot the property of Pakistan. and is an individual identify.. Won't bode well .. Just look at US economy
Secondly openly asking for penal code to be change just amount to interference in soverign state. unless we are not soverrign
Hor chopu .. 5000 tax denay walo