Govt, IMF in a fix over energy sector issues

The Inter­national Monetary Fund (IMF) and the government appeared to be in a fix over energy sector issues amid rising fears of a potential default-like situation in some blue-chip public sector entities, raising question marks over the quality and design of the $7 billion loan programme signed only two months ago. The visiting IMF team, led by mission chief Nathan Porter, also reportedly expressed concerns over provincial cash surplus targets missed in the first quarter, largely due to the Punjab government’s overspending of about Rs160 billion. As a result, the national target of Rs350bn for provincial budget surplus was missed even though three other provinces met their commitments. The IMF was informed that legislation for agricultural income tax would be introduced in Punjab soon, followed by Sindh. Later on Thursday, the Punjab Assembly passed the Punjab Agriculture Income Tax (Amendment) Bill 2024 amid a boycott of proceedings by government-allied PPP. All other provincial cabinets had reportedly cleared their respective, but uniform, draft laws.