PM not happy with IMF deal, calls meeting tomorrow.

ISLAMABAD -- Prime Minister Imran Khan on Saturday turned down the draft of a staff-level agreement between the Ministry of Finance and International Monetary Fund (IMF) and summoned officials to brief him on economic affairs and the progress of talks with the Fund. Imran is apparently not happy with the conditions put forth by the Fund for the bailout package of $8bn. Under the proposed bailout agreement, Pakistan would have no choice but to concede to the IMF's demands to hike power tariffs and taxes and withdraw tax concessions and exemptions which are among the conditions that the country has accepted to secure the loan. During their discussions on Wednesday, the two sides worked out a financing gap of around $11 billion for the next fiscal year, 2019-20. Under the understanding, the government will start withdrawing exemptions offered in various taxes amounting to around Rs350bn in the budget for 2019-20. The two sides also agreed that Pakistan would increase the costs of electricity and gas for the consumers in the next budget. However, reforms in the tax and energy sectors have been outlined in the list of top priorities.

According to sources, the government will have to reduce subsidies and take Rs340bn from consumers in the energy sector only. It has been agreed that the power sector regulator, the National...