IMF rejects Pakistan government proposal of relief to poor
Shares
Pakistan's efforts to secure relief from the International Monetary Fund (IMF) for electricity bills have hit a roadblock, with sources revealing that the government's proposal could impact the planned recovery of up to Rs6.5 billion.
According to insiders within the finance ministry, Pakistan and the IMF failed to reach an agreement on the proposed relief for electricity bills. The caretaker government had argued that this relief would result in a reduction 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 in recoveries, exceeding Rs15 billion. The IMF has also requested that Pakistan present a plan to bridge this Rs15 billion financial gap.
Sources indicate that the caretaker government has postponed announcing the electricity bill relief while it prepares to share a revised plan with the IMF. Once the new plan is presented, officials from the finance ministry and the IMF will engage in further negotiations. Pakistan's caretaker government has assured the IMF that the proposed relief will not breach budgetary constraints.
The finance ministry has also made a request to the IMF to allow electricity bills to be paid in instalments over four months, and discussions on this matter will continue with the Fund.
