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IMF demands increase in basic power tariff
The International Monetary Fund said that digitisation of institutions is also important to prevent circular debt
Islamabad: The International Monetary Fund (IMF) has demanded an increase in the basic electricity tariff.
The IMF has called for an increase in electricity prices in the next financial year and a stop on revolving debt, asking that the revolving debt be stopped up to 2300 billion rupees, subsidies on electricity prices and various aspects should be phased out.
The International Monetary Fund said that digitisation of institutions is also important to prevent circular debt. One-third of the subsidy of 976 billion rupees has been given by January 2024. Subsidy of 249 billion rupees in the form of tariff differential and others should be abolished.
It has been stated by the IMF that Rs255 billion in arrears related to PHL stock and power generation should also be phased out, while, Rs125 billion in additional subsidy of arrears and fines should also be eliminated.
It was further stated by the International Monetary Fund that the revolving credit can be limited to 2300 billion rupees by eliminating subsidies, the target of revolving credit will also be achieved by continuing efforts against electricity theft.
It is pertinent to note that the negotiations between Pakistan and the IMF mission on the new budget and new loan program started yesterday.