Pakistan’s efforts to secure relief from the International Monetary Fund(IMF) for electricity bills have hit a roadblock, with sources revealingthat the government’s proposal could impact the planned recovery of up toRs6.5 billion.
According to insiders within the finance ministry, Pakistan and the IMFfailed to reach an agreement on the proposed relief for electricity bills.The caretaker government had argued that this relief would result in areduction in recoveries by Rs6.5 billion.
However, it has come to light that the IMF rejected this proposal,expressing concerns that it could lead to a more significant reduction inrecoveries, exceeding Rs15 billion. The IMF has also requested thatPakistan present a plan to bridge this Rs15 billion financial gap.
Sources indicate that the caretaker government has postponed announcing theelectricity bill relief while it prepares to share a revised plan with theIMF. Once the new plan is presented, officials from the finance ministryand the IMF will engage in further negotiations. Pakistan’s caretakergovernment has assured the IMF that the proposed relief will not breachbudgetary constraints.
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The finance ministry has also made a request to the IMF to allowelectricity bills to be paid in instalments over four months, anddiscussions on this matter will continue with the Fund.
