Impact of IMF Targets and Conditionalities on the Economy Energy Sector Policies: This is a critical problem area of the economy. The focus as shown in Chart 5.4 is on reducing the huge subsidy and better targeting it. This is to be achieved by regular tariff adjustments and medium-term cost reducing structural reforms, including containment of losses. SOEs: The commitments made in shown in Chart 5.4 relate to SOE legal reforms, advancing privatization and increased transparency through establishment of a Central Monitoring Unit. Improving Competitiveness and the Business Environment: This includes a new tariff policy proposal for more import substitution and promote‘MADE IN PAKISTAN’. Strong steps to control corruption to facilitate economic transactions by the private sector. Poverty Reduction and Social Protection: Commitment to expanded BISP program, and Kafalat program and Sasta Fuel and Sasta Diesel program, and rationalization of other programs. Chart 5.4: Energy Sector Policies and State-Owned Enterprises(SOEs) ENERGY SECTOR POLICIES • Better targeting of subsidies • Resuming Regular Tariff Adjustments • Reducing the Circular Debt Stock • Accelerating Medium-Term Cost-Reducing Structural Reforms • Reforms in the Gas Sector • Updating of Gas Prices STATE-OWNED ENTERPRISES Improving SOEs governance, transparency, efficiency as well limiting the fiscal risks: • SOE Legal Reforms • Central Monitoring Unit(CMU) with MOF to improve SOE performance • Increasing Transparency • Advancing Privatization and SOE support ◊ Debt recapitalization and refinancing of two RLNG plants ◊ Advancing privatization of HBFC and First Women Bank 65