ISLAMABAD: Following the initial rejection, the caretaker government has submitted a new proposal to the International Monetary Fund (IMF). This revised plan suggests that the extra funds designated for independent power producers (IPPs) could be reallocated to alleviate the concerns of consumers who have been protesting the steep increase in their electricity bills.
The finance ministry sources have announced a new plan, allocating over Rs15 billion to IPPs after receiving bill instalments. Finance ministry officials will discuss this plan with the IMF again, assuring that no relief outside the budget will be provided to the people.
The IMF had previously rejected an earlier relief plan sent by the caretaker government for power consumers, citing an impact of over Rs15 billion, not the proposed Rs5 billion. The IMF requested a proposal on how Pakistan intends to cover this fiscal space.
In a related development, caretaker Finance Minister Dr. Shamshad Akhtar expressed the interim government’s unwavering commitment to fulfilling its obligations under the IMF program during a meeting with World Bank Pakistan Country Director Najy Benhassine in Islamabad.
The World Bank praised Pakistan’s dedication to economic reforms and expressed readiness to provide technical and financial support for development projects aimed at strengthening fiscal management, implementing foundational reforms, and aiding social safety nets.
Recent protests erupted due to a significant increase in electricity prices, with people demonstrating against high utility bills and inflation. The situation has arisen from decades of mismanagement and instability in Pakistan’s economy, leading to a deal with the IMF to avert default.
The IMF’s demands include slashing popular subsidies, meeting revenue targets, and raising petrol and electricity prices, which have caused public unrest.
Government Unleashes Vigorous Measures To Catch Power Thieves Red-Handed
Meanwhile, amid nationwide protests against inflated electricity bills and in light of the International Monetary Fund’s (IMF) stringent conditions for a short-term $3 billion bailout package, the authorities have thus far failed to provide immediate relief measures.
