The burden on the public is likely to increase in the next financial year as the government is likely to raise electricity and gas tariffs in September-October on International Monetary Fund (IMF) demand.
The prices will be increased gradually, according to the finance ministry. There is a deadlock between Pakistan and IMF on the increase in electricity tariff.
Read More: Pakistan, IMF talks deadlocked over several ‘contentious’ issues
IMF will release the loan installment only if the negotiations are successful. If the electricity tariff is not increased, the budget deficit is likely to increase, according to the finance ministry.
The budget deficit is expected to rise to another $2 billion.
The budget deficit for the next financial year could exceed Rs4,000 billion. If negotiations fail with IMF, international institutions like World Bank and the Asian Development Bank (ADB) will stop loan payments to Pakistan.
