IMF demands end of subsidy for tube well users

Islamabad: The International Monetary Fund (IMF) demanded an end to budget subsidies for tube well users, reportedly.

According to media reports, officials of the Ministry of Energy and the Ministry of Finance held a meeting at the technical level of the IMF mission during which the launch of the tube well solarization scheme was discussed in the current financial year.

It is reported that IMF has asked to introduce solarization system for the agricultural sector of Pakistan. The mission demanded an end to the budget subsidy for tube well users, saying that in Rs90 billion, Rs30 billion federal, Rs30 billion provinces and tube well users will give 30 billion rupees.

Due to the implementation of the scheme, it has also been asked not to give subsidy to tube wells users in the budget of the next fiscal year.

IMF was told in the meeting that National Electric Power Regulatory Authority (NEPRA) is making timely notification of quarterly adjustments, fuel price adjustments for cost-recognizing tariff improvement, told reports.

It is also stated that IMF has also directed cooperation between DISCOs, Ministry of Energy and NEPRA and speedy implementation of decisions.