ISLAMABAD:

The International Monetary Fund (IMF) has slashed Pakistan's power subsidies by Rs143 billion and set a strict target of limiting the flow of circular debt to Rs400 billion this year, the renewed goals that will require improving poor performance rather than continued reliance on taxpayers' money.

However, contrary to the IMF's new target of adding only Rs400 billion to the circular debt flow, the Economic Coordination Committee (ECC) of the Cabinet approved a higher flow target of Rs522 billion for the current fiscal year. The ECC approved the target a day after the IMF board meeting that had approved these targets along with the $1.2 billion loan tranche.

Compared to the Rs1.04 trillion budgeted subsidies for the current fiscal year, the IMF has reduced the allocation to Rs

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