IMF approves relief in payment of electricity bills

Islamabad: International Monetary Fund (IMF) rejected the Pakistan government's proposal to provide relief to consumers of up to 400 units of electricity.

According to media reports, there was a communication between Pakistan and IMF officials on the issue of providing relief to consumers on electricity bills.

It is reported that IMF rejected the proposal to give relief to the consumers of up to 400 units of electricity, however agreed to collect the bills in installments from the consumers of up to 200 units of electricity.

Finance Ministry said that consumers with 200 units will be relieved in electricity bills as there will be no penalty for bill payment after the due date.

According to the document of Finance Ministry, the relief in electricity bills has been given for August 2023. There will be no additional penalty of 10% for late payment of bills.

The final approval to receive bills in installments will be taken from the federal cabinet, with this initiative, about four million electricity consumers are likely to get temporary relief. While 32 million consumers will benefit in the form of relief up to 400 units.

Reports also told that IMF urged the Pakistani authorities to crack down on electricity and gas thieves and improve recovery.

They also demanded an increase in gas tariff from 45 to 50 percent from July 1. The increase in gas tariff is subject to the approval of the federal cabinet.