ISLAMABAD: Tough political decisions are expected from the government, including a reduction in electricity and gas subsidies, to continue the IMF program.
The government’s economic team is facing difficulties in negotiations and cabinet members are objecting to the strict conditions while a meeting will be held today for a new subsidy formula.
Economist Dr. Ashfaq Hassan says that in the Corona situation, the IMF will have to back down.
According to economists, in the aftermath of the Corona epidemic, a middle ground must be found and the IMF must be persuaded to raise electricity and gas prices, raise interest rates and reduce subsidies. The burden will increase.