In a significant development, the International Monetary Fund (IMF) has given the green light to a relief proposal aimed at providing respite to electricity consumers in Pakistan. Under this plan, consumers using up to 200 units of electricity per month will be allowed to pay their bills in installments, according to reliable sources.
This move comes amidst nationwide protests against exorbitant power bills and increased taxes, with citizens and traders taking to the streets to voice their concerns. The interim government, led by Prime Minister Anwaar-ul-Haq Kakar, has been actively seeking ways to alleviate the financial burden on the population, particularly in a country grappling with soaring inflation.
However, it’s worth noting that the IMF has rejected the government’s plan to extend relief to those consuming up to 400 units of electricity per month, which could have benefitted approximately 32 million consumers, as per insider sources.
“The final approval to collect bills in installments will be taken from the federal cabinet,” the sources revealed. It is estimated that around 4 million electricity consumers are likely to receive temporary relief through this initiative, pending cabinet approval.
The IMF’s decision to withhold relief for higher consumption levels has raised concerns, prompting calls for increased efforts to combat electricity and gas theft and enhance recovery mechanisms.
Furthermore, the IMF has reportedly demanded a 45 to 50% increase in gas tariffs, set to take effect from July 1. The fate of this tariff hike lies in the hands of the federal cabinet, who will determine its approval.
Pakistan is currently under an IMF program, and any relief or subsidy initiatives must obtain the organization’s consent. This development follows intense negotiations between Pakistan and the IMF to address the issue of inflated electricity bills and quell nationwide protests. The country continues to grapple with economic challenges and strives to find a balance between meeting the IMF’s demands and ensuring the welfare of its citizens.
