In a significant development, the International Monetary Fund (IMF) has officially rejected the relief plan submitted by Pakistan’s caretaker government aimed at providing assistance to power consumers. Sources within the Ministry of Finance have confirmed that the IMF’s decision is based on concerns about the plan’s financial impact, which is estimated to be over Rs15 billion, a substantial increase from Pakistan’s initial proposal of Rs5 billion.
The rejection by the IMF has necessitated a fresh round of negotiations between Pakistan’s financial authorities and the international lender. The IMF has insisted that Pakistan develop a comprehensive strategy for generating the Rs15 billion in tax revenue that would be required to fund the relief plan.
This unexpected setback has led to a delay in the relief plan’s implementation, as the caretaker government now needs to draft a revised proposal and present it to the IMF for further discussions.
Sources privy to the matter have also revealed that the caretaker government has attempted to reassure the IMF that the proposed relief measures will not adversely impact the country’s budget. Additionally, they have requested permission from the IMF to allow power consumers to settle their bills in four monthly installments, potentially offering some respite to consumers facing financial difficulties.
As Pakistan navigates these negotiations with the IMF, the fate of the relief plan remains uncertain, and the government is under pressure to strike a balance between supporting its citizens’ needs and adhering to its international financial commitments. Further updates on this developing story are expected in the coming days.
