The International Monetary Fund (IMF) has given the green light to a relief proposal aimed at consumers using up to 200 units of electricity, allowing authorities to collect electricity bills in installments, according to sources informed Geo News on Thursday.
However, the interim government’s plan to extend relief to those consuming up to 400 units of electricity per month was reportedly rejected by the IMF, the sources added.
The sources mentioned that the final approval for collecting bills in installments will be sought from the federal cabinet. This initiative is expected to provide temporary relief to approximately 4 million electricity consumers.
If relief had been granted to those consuming up to 400 units of electricity, it could have benefited 32 million consumers, the sources noted.
Furthermore, it was revealed that the IMF had stressed the importance of addressing electricity and gas theft issues and improving revenue collection.
In addition, sources indicated that the IMF had also called for a gas tariff increase of 45 to 50% starting from July 1. However, any adjustment in gas tariffs remains contingent on approval from the federal cabinet.
In response to sustained protests by citizens and traders, who have taken to the streets to express their discontent over steep increases in power bills and additional taxes, the caretaker government, led by Prime Minister Anwaar-ul-Haq Kakar, has been actively seeking the IMF’s agreement to provide immediate relief to electricity consumers in a country grappling with significant inflationary pressures.
It is worth noting that Pakistan is under an IMF program, and any relief or subsidy is subject to IMF approval.
Both sides have engaged in extensive discussions to find solutions to address the issue of inflated electricity bills amid nationwide protests.
