IMF rejects caretakers’ proposal to give relief to power consumers

Islamabad: The negotiations between Pakistan and the International Monetary Fund (IMF) regarding an electricity bill relief plan encountered a significant obstacle, the sources in the Ministry of Finance said on Monday.

The initial proposal aimed to provide relief to electricity consumers, with an estimated impact of just under 6 billion rupees.

The IMF, however, rejected this proposal, contending that the fiscal consequences would be much higher, surpassing 15 billion rupees.

The sources said that the IMF requested the Ministry of Finance to bridge this fiscal gap of 15 billion Rupees. Consequently, the Ministry has initiated a review and adjustment of its relief plan, leading to a delay in reaching an agreement.

Following the submission of the revised plan, both IMF officials and representatives from the Ministry of Finance will engage in further discussions.

Besides it, it was assured to the IMF that this commitment to facilitate relief on electricity bills would be duly incorporated into the national budget. A specific request was made to the IMF to expedite the collection of these bills within a condensed four-month timeline.

The sources from the Ministry of Finance indicated that discussions with the IMF would revisit the concept of enabling consumers to pay electricity bills in installments as part of the ongoing negotiations.