Electricity Bills in installments
Caretaker Finance Minister Shamshad Akhtar is resolute in the full implementation of the latest IMF program ahead of its first economic review, which has sparked concerns of further increases in electricity and petrol prices rather than providing relief. The government has proactively shared a plan with the IMF, outlining the collection of electricity bills in installments.
Upon the successful completion of the IMF program, it is anticipated that the price of petrol may rise by Rs10, and diesel could see an increase of Rs15 per liter.
Given the already staggering annual inflation rate of 28.3%, experts anticipate further escalation, potentially resulting in a 22% policy rate.
The shared plan with the IMF includes proposals for a phased increase in the basic unit of electricity.
They proposed measures to facilitate electricity bill payments, including permitting consumers to pay in installments.
If the IMF agrees, they could strike a two-month deal, with the Ministry of Finance offering a written guarantee for collecting bills in installments for August and September.
They are concurrently devising an emergency action plan to combat electricity theft effectively. Additionally, they are developing a relief plan tailored for consumers using 400 units of electricity.
Despite these efforts, the US dollar has reached a historic high of Rs305 in the interbank market, reflecting an alarming increase of Rs87 within a year.
The country’s loans have also ballooned to Rs9,300 billion due to the rupee’s depreciation during the previous PDM government’s tenure.
As the government engages with the IMF to navigate these economic challenges, the focus remains on addressing rising costs, curbing theft, and providing relief to consumers, particularly those with limited electricity consumption.
