| GEO Business|
Power subsidy to be withdrawn, IMF assured
| Updated at: 0637 PST, Saturday, September 18, 2010|
ISLAMABAD: The federal government of Pakistan has assured International Monetary Fund (IMF) that the subsidy on electricity will be withdrawn and the tariffs will further be raised to settle down issues relating to circular date for the growth of power sector, Geo News reported Saturday.
This assurance was extended to IMF through a ‘letter of intent’ written from central government.
Additional 10 percent income surcharge will be leveled to meet losses caused by worst ever floods in country’s history, said the letter.
While the reforms in General Sales Taxes (GST) will be brought by October 1 this year.
According to letter, the government has anticipated economic development will drop from previous anticipation 4.5 percent to 2.5 percent due to flood disaster while the inflation rate will remain intact at 13 percent pace.