Pakistan has proposed a plan to the International Monetary Fund (IMF) to lower electricity prices by Rs6 per unit by injecting Rs2.8 trillion.
However, this proposal relies on risky funding methods and may not receive immediate approval from the IMF.
The federal government has stated that Rs1.4 trillion of the total amount will come from all four federating units, including Khyber Pakhtunkhwa (K-P). However, the Pakistan Tehreek-e-Insaf (PTI)-led K-P government has rejected its contribution.
Discussions between the IMF and Pakistani officials on this Rs2.8 trillion plan took place over the weekend, but no conclusions were reached. The IMF has requested additional details.
The government has proposed to reduce the electricity prices by Rs5.80 per unit by changing terms of local and the government-owned power producers, closing some inefficient plants and retiring Rs2.7 trillion debt.
