Pakistan, IMF to Discuss Energy Subsidies, Carbon Tax on Cars Tomorrow

Pakistan and the International Monetary Fund (IMF) will meet tomorrow (Tuesday) to discuss targeted electricity and gas subsidies through the Benazir Income Support Program (BISP), quarterly gas price adjustments, and a new carbon levy on cars that run on liquid fuel. Overall, key energy reform proposals include replacing electricity and gas tariff subsidies with targeted rebates for low-income consumers via BISP, implementing a quarterly gas tariff adjustment to curb circular debt, and adopting stricter anti-theft laws for DISCOs, reported Business Recorder. The government also aims to incorporate climate concerns into budgeting by expanding climate budget tagging to provinces and publishing climate expenditure reports. New Public Sector Development Program (PSDP) projects will require climate impact assessments and transparency in selection criteria. Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) will introduce climate-related financial risk guidelines and a green finance scheme of classification to align with the country’s current commitments to climate resilience.