The Ministry of Finance, the Ministry of Energy, and the International Monetary Fund (IMF) have hit a roadblock in their negotiations concerning relief on electricity bills.
According to insider information, the IMF has insisted that Pakistan revoke concessions granted to self-generating industries.
Insiders reveal that the IMF is pressing for an immediate hike in gas rates for power-generating industries, with the proposed increase scheduled to take effect from July 2023.
Reports suggest that the IMF has further demanded that the Pakistani government submit a comprehensive plan for rate hikes, effectively ending subsidized tariffs for power-generating industries.
According to sources, the IMF is also urging a revamp of the power sector’s infrastructure to alleviate the burden on consumers.
Sources indicate that a request for an extension in the implementation timeline for the IMF’s relief plan for electricity bills has been made.
It’s worth noting that the Pakistani government initially approached the IMF seeking relief from soaring electricity bills. In response, the IMF requested a formal written plan, which was subsequently submitted by the interim federal government.