ISLAMABAD: International Monetary Fund (IMF) has slapped Pakistan with slew of new conditions regarding energy subsidies and provincial budgets after Punjab took "Fiscally reckless" decision to give Rs 45 to Rs 90 billion electricity subsidies for two months.

Government sources told that global lender imposed at least three critical-nature conditions on Punjab government after province gave Rs 14 per unit electricity subsidy for two months. IMF asked an end to this temporary subsidy by September 30th and made it clear that no provincial government would give any such new subsidy during 37-month Extended Fund Facility programme.Bew conditions may jeopardise Punjab's plan to dole out Rs 700 billion for giving solar panels to consumers having up to 500 monthly consumption. "Provinces agree that they will not introduce any subsidy for electricity or gas," according to condition lately introduced by IMF. Conditions also belie claims that provincial governments can give subsidies on electricity and also bring into question statement of Prime Minister Shehbaz Sharif, who had encouraged three other provinces to follow suit.

Due to bad governance, higher line losses, higher taxes, putting burden of subsidies on consumers of over 300 units monthly consumption and expensive deals, electricity has now become unaffordable for majority of residential consumers.According to third new critical condition, provinces would consult with Finance Ministry before modifying or adopting any measures that could affect or undercut structural benchmarks and key actions agreed with IMF, said sources.