IMF seeks additional details on power sector from Pakistani side

ISLAMABAD: The International Monetary Fund (IMF) has sought additional information related to the power sector' circular debt as well as taxes on electricity bills to decide on the possible relief to the masses.

Sources said that the ministry of Finance shared an electricity bill relief plan with the Fund last week.

The MoF claimed in the submitted plan that the relief in electricity bills will have a Rs6.5 billion impact but reportedly the IMF point of view was opposite to the ministry of finance view.

The Fund officials think that the relief could be around Rs15 billion and they questioned from the Pakistani side how the latter one will cover this Rs15 billion gap.

The Pakistani side has also asked the Fund to delay the monthly and quarterly adjustment for a few years besides giving consumers upto 400 units to pay bills in installment.

Sources said that the IMF clearly told the Pakistani side that there is no room for additional subsidies adding that the power sector circular debt is increasing with the passage of time.

Reportedly, the Pakistani side will share another relief plan with the IMF soon.

Recently, the Prime Minister also said that the government will soon announce relief measures without defying international commitments.

According to the PM Secretariat, the PM and caretaker Finance minister on Monday also held a meeting in which Shamshad Akhtar briefed the premier about the current economic situation of Pakistan.