Contact Information
[email protected]
Raiwind Rd, Bhobtian, Lahore, Punjab
We're Available 24/ 7. Call Now.
IMF rejects govt plan to cut electricity costs
ISLAMABAD (92 News) The International Monetary Fund (IMF) has rejected the government’s plan to reduce electricity tariffs by Rs8 per unit, which was expected to be implemented from April 1.
The IMF raised concerns over the fiscal impact of the proposal during ongoing discussions regarding Pakistan’s economic performance under the $7bn Extended Fund Facility (EFF), delaying the much-anticipated relief for consumers.
Earlier, government sources suggested that the prime minister would announce an Rs8 per unit decrease in electricity rates during his Pakistan Day speech, with the cut reflected in bills by May. Of this, Rs4.73 was planned as a permanent adjustment.
However, the IMF’s review process deemed the proposal incompatible with Pakistan's fiscal framework, delaying the tariff reduction.
Also, Prime Minister Shehbaz Sharif chaired a meeting on March 23 to discuss energy sector reforms and tariff cuts.
Key officials, including the ministers for power, economic affairs, and privatisation, addressed legal and regulatory challenges hindering the immediate implementation of the proposed price reductions.
The prime minister stressed that energy reforms, including lower electricity prices, were crucial to providing relief to the public.
He also reaffirmed the government's commitment to renewable energy, confirming no changes to the solar energy policy despite criticism.
He directed officials to clarify misconceptions about the solarisation policy and emphasised speeding up the privatisation of power distribution companies to enhance sector efficiency.
The IMF’s objection has placed additional pressure on the government to find alternative ways to address the energy crisis.
The government is hopeful that a revised plan will be presented for IMF approval, but the delay in tariff reductions remains a major issue for consumers facing high energy bills.
While committed to exploring alternative measures and coordinating across ministries, the IMF's concerns highlight the challenge of balancing fiscal discipline with providing public relief.