Pakistan: IMF rejects power relief plan. According to sources in the Finance Department, the International Monetary Fund (IMF) has rejected the Pakistani government’s proposal to help the poor pay their exorbitant electricity bills.
They claimed that the relief plan not agreed upon with the IMF.
The Pakistani government stated in the proposal that the impact of the relief provision would be less than Rs6.5 billion. However, the IMF estimated the impact to be around Rs15 billion and rejected the plan as a result.
A proposal on how Pakistan proposes to close this fiscal gap of Rs. 15 billion reportedly requested by the IMF.
The Finance Ministry and IMF authorities begin negotiations once the new plan disclosed to the international lender.
According to sources, Pakistan has assured the IMF that reducing exorbitant power bills won’t cause a budget deficit.
A plan requesting that consumers pay their electricity bills in four monthly installments submitted to the IMF for approval.
The temporary administration came up with a plan to lower consumers’ outrageous electricity bills, offering a Rs. 3000 discount for customers using 300 units.
According to reports, the aforementioned amount deducted from power consumers’ bills if they used 300 units or less in September.
A plan to reduce the burden of paying for electricity on the low-income shared by the government with the IMF a few days ago.
Pakistan: IMF rejects power relief plan. The government promised that none of the goals set by the previous administration jeopardized.
Electricity bills: Traders shutter down strike on Sept 2
Dr. Shamshad Akhtar, the acting finance minister, claimed that an IMF delegation visited Pakistani authorities. Even though she wasn’t on the team, she reaffirmed Pakistan’s dedication to upholding the IMF program.
According to sources, the IMF could agree to collecting the amount of the monthly bills for August and September in installments but would not agree to any reduction in taxes levied through electricity bills.