IMF’s Relief
ISLAMABAD: The International Monetary Fund approved some aspects of the government’s proposals aimed at providing relief in electricity bills.
The government contacted the IMF again, but the latter rejected the proposal to provide relief to consumers using up to 400 units of electricity.
However, the Fund approved relief for individuals using up to 200 units of electricity. The consumers with less than 200 units will only get relief of payment in installments. This relief seems to be a joke with the poor power consumers in the country.
This measure is expected to offer relief to approximately four million consumers nationwide. The approval of the 400-unit proposal would have extended relief to 32 million people.
Nonetheless, the IMF has ordered the government to combat electricity theft and improve bill collections.
Additionally, the Fund has demanded a 45 to 50 percent increase in gas tariffs, pending cabinet approval.
The government has been working to find solutions following widespread protests against high electricity bills across the country.
However, it has faced the challenge of balancing consumer relief with adherence to an IMF program.
Earlier, the IMF rejected the government’s proposal of relief, citing an estimated revenue loss of 15 billion. The government contended that the loss would not exceed Rs6 billion. Nonetheless, IMF threw this plan away, asking government to send new plan.
