In its vehemence to complete the prior actions as suggested by the International Monetary Fund for reaching a staff-level agreement with the lender, the government has increased the electricity price for export sector including textile.
Reportedly, the government has withdrawn the competitive rates offered to the export sector, and from today (March 1), the power rate has been increased for the sector.
So, the government has withdrawn the notification to provide electricity to the export sector at subsidized rate of Rs19.99.
The federal cabinet gave approval to the withdrawal of the competitive rates for the export sector.
The decision was taken to reduce the circular debt in power sector.
The federal cabinet gave its assent to the revised circular debt plan.
Pakistan is facing tough conditions for the restoration of the IMF bailout package. The global lender has changed interpretations of at least four prior actions ahead of reaching a staff-level agreement (SLA) on the direly needed economic bailout.
Sources reveal that the authorities are extremely annoyed at the latest situation. However, despite this disappointment, Pakistan anticipates the conclusion of the SLA next week and the materialisation of financing support from friendly nations - some of which took more time than anticipated because of signals from the Fund.