The International Monetary Fund (IMF) has requested additional data fromthe Power Division to make a decision on various proposals aimed atproviding relief from inflated electricity bills for August and September.Some top sources engaged with the IMF stated, “We have shared the necessarydata with the Fund, hoping that the IMF may respond today with a yes or noto the requests from the Finance and Power Divisions, seeking approval toease the burden on people facing high electricity bills.”
“At present, officials from both the Power and Finance divisions areengaged in intense discussions with the IMF representatives regarding thedata related to suggested measures for reducing power tariffs and theirpotential impact on the circular debt, cash flow situation, and potentialdelays to Independent Power Producers (IPPs), which could ultimatelyfurther destabilize the power sector.”
Previously, caretaker Prime Minister Anwaar-ul-Haq Kakar had mentioned onAugust 31 that the Fund would provide its approval within 48 hours, but thedeadline has passed, and the decision from the IMF is still pending. TheIMF was previously briefed on a proposal that involved scaling down aportion of the tariff, up to 30 percent for August and September, with thereduced tariff’s impact being passed on to consumers over six months duringthe winter season, from October 2023 to March 2024, in a phased manner.
