ISLAMABAD: International Monetary Fund (IMF) has turned down Pakistan government’s proposal designed to provide relief to impoverish for exorbitant electricity bills, sources in Finance Department said. They said consensus could not be achieved with IMF over relief plan.

In proposal, IMF was informed by government that relief provision would have an impact of less than Rs 6.5 billion. IMF, however, put impact at about Rs 15 billion and dismissed plan as result. IMF has now reportedly sought proposal on how Pakistan intends to cover this fiscal space of Rs15 billion.

Once new plan is shared with global lender, Finance Ministry and IMF authorities will head into talks again.

Pakistan has assured IMF that providing relief for inflated power bills will not result in budget deficit, sources added. IMF was requested to approve plan seeking payment of electricity bills by consumers in installments over course of four months.

Interim government devised strategy to provide relief to power consumers on exorbitant electricity bills, with reduction of Rs 3,000 for users consuming 300 units.

Reports suggest that bills for power consumers using 300 units in September will be decreased by aforementioned amount. Caretaker Minister for Finance Dr Shamshad Akhtar said team comprising Pakistani authorities met with IMF officials. While she was not part of team, she reiterated Pakistan’s commitment to honour IMF programme.

Published in The Daily National Courier, September, 05 2023

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