Caretaker govt decides against privatising two LNG-run power plants,
In its Fiscal Monitor Report 2023 The International Monetary Fund (IMF) has estimated that Pakistan’s fiscal deficit this year would be Rs1,137 billion more than the target.
the Fund reported that Pakistan’s deficit will reach Rs8,042 billion in the year 2023-24, while the fiscal deficit target that the government has set is Rs6,905 billion.
The country’s expenditures are likely to reach almost double its gross income, according to the IMF report.
It further forecasts the deficit to be 7.6% of the GDP instead of 6.5%. The debt ratio will remain at 72.2% instead of the statutory target of 60%, the report says.
This year, the primary surplus is likely to be Rs421 billion, in line with the 0.4% target, according to the report.
The gross income is projected to be 12.5% and the gross expenditure 20.1% of the gross domestic product.
Earlier,
A plan shared with the International Monetary Fund (IMF) shows that Pakistan has decided not to privatise two power plants fired by liquefied natural gas (LNG), sources in Power Division say.
According to the sources, the caretaker government would not privatise the Haveli Bahadur Shah and Baloki power plants as the process can’t be completed during its tenure.
The move comes after the Pakistan had committed with the IMF that the two units would be privatised as part of the overall condition set by the world’s top lender to dispose of the state-owned enterprises.
On the other hand, the Privatisation Commission source say the plan can make the IMF demand even more strict demands in the upcoming review of the $3 billion bailout programme agreed with the former coalition government.
These sources added that the IMF was of the stance the privatisation of the two LNG-fired power plants would increase the country’s foreign reserves. However, the government formed after the general elections would going to decide the matter, they said.
