Relief in Electricity Bills Sought as IMF Requests Written AgreementAccording to media reports, the International Monetary Fund (IMF) hasdemanded a written agreement with the Ministry of Finance to grant reliefin electricity bills.
The IMF has put forward five conditions to the Ministry of Finance and theMinistry of Energy. One of these conditions includes the return ofconcessions granted to captive power producers. According to documents fromthe Ministry of Finance, like other consumers, an immediate increase in gasrates for captive power producers will be implemented starting from July2023.
The IMF has also requested the elimination of concessions and thediscontinuation of plans to raise rates for captive power producers.
The IMF has instructed the Ministry of Finance to ensure the correction ofthe power sector’s system to provide relief to consumers. It’s worth notingthat previously, the Minister for Energy, Muhammad Ali, mentioned that aplan was sent to the IMF for providing relief in electricity bills.
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The response from the IMF regarding relief in electricity bills is expectedwithin the next two days. To prevent industries from shutting down due to agas shortage during the winter, Liquefied Natural Gas (LNG) plants will beinstalled to ensure gas supply to industries. Muhammad Ali stated that thegas sector is incurring an annual loss of 3 billion rupees, and the searchfor new gas reserves has halted. He also mentioned that circular debt hasincreased, and several companies have left the country.
Efforts are underway to reduce the circular debt, discussions have beenheld to depoliticize the boards of Discos (Distribution Companies), andsteps have been taken to rectify the issues in the gas sector.
