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Shillong, September 14: Pakistan’s proposal to the International Monetary Fund (IMF) regarding relief in electricity bills for consumers has faced a setback, as the IMF has responded with a list of preconditions that must be met before any relief can be provided.
As per IANS, the Pakistan government had sought approval from the IMF to ease the burden on consumers who have been protesting against high power tariffs and additional taxes in their electricity bills.
In response, the IMF has insisted that the Pakistan government withdraw the subsidy currently provided on gas supplied to captive power plants (CPPs).
Pakistan’s Ministry of Finance and Ministry of Power have been engaged in discussions with the IMF concerning relief measures for power consumers who have been struggling with significantly increased electricity bills in July.
A source within the government revealed, “The IMF has instructed the interim government to immediately raise the price of gas supplied to the CPPs, effective from July.” The IMF’s preconditions include five specific demands that must be met before permission is granted for relief to power consumers, including a plan to eliminate the gas subsidy and raise gas prices for CPPs.
The government turned to the IMF after widespread protests erupted due to inflated electricity bills, with outraged citizens refusing to pay and even burning their bills. Protesters argued that they could not afford the high per-unit tariffs and taxes, which they believed were accompanied by excessive billing.
As protests and public anger escalate, the government’s ability to provide relief to consumers hinges on securing IMF approval. An official in the finance division explained, “Pakistan has presented various options to the IMF for providing relief to power consumers, but we are still awaiting their response.”
Pakistan’s economic situation is precarious, with rising power tariffs and bi-weekly increases in petroleum product prices directly impacting the cost of essential goods. This has triggered unrest among the populace, who claim that survival has become nearly impossible under these increasingly dire circumstances.