IMF to announce decision about relief on electricity bills
Shares
The International Monetary Fund (IMF) has requested additional data from the Power Division to make a decision on various proposals aimed at providing relief from inflated electricity bills for August and September. Some top sources engaged with the IMF stated, "We have shared the necessary data with the Fund, hoping that the IMF may respond today with a yes or no to the requests from the Finance and Power Divisions, seeking approval to ease the burden on people facing high electricity bills."
"At present, officials from both the Power and Finance divisions are engaged in intense discussions with the IMF representatives regarding the data related to suggested measures for reducing power tariffs and their potential impact on the circular debt, cash flow situation, and potential delays to Independent Power Producers (IPPs), which could ultimately further destabilize the power sector."
Previously, caretaker Prime Minister Anwaar-ul-Haq Kakar had mentioned on August 31 that the Fund would provide its approval within 48 hours, but the deadline has passed, and the decision from the IMF is still pending. The IMF was previously briefed on a proposal that involved scaling down a portion of the tariff, up to 30 percent for August and September, with the reduced tariff's impact being passed on to consumers over six months during the winter season, from October 2023 to March 2024, in a phased manner.
