The International Monetary Fund (IMF) has set a deadline for Pakistan on 2031 to eliminate circular debt in the power sector.
The fund has also imposed a condition that requires zero annual flow of circular loan.
Sources told proposal that the IMF has requested a revised circular loan management plan to eliminate the current stock of circular loan.
The IMF has also declared a grid transfer levy to off -grid detainees, which starts at 10 %, which is immediately effective. This levy will increase by 15 % during January 2026 and August 2026 to 20 %. The purpose of the government. Under this tax, 105 billion from captive power plants this fiscal year.
Separately, sources said that the recent floods have caused economic losses. 370 billion, infrastructure and severe damage to the agriculture sector.
Due to these shocks, Pakistan’s growth target for the financial year 2025-26 has been reduced from 4.2 % to 3.9 %.
Sources added that the country will also need $ 26 billion in external financial during the current financial year, of which $ 12 billion is expected to be eliminated.