IMF approves Rs 15 billion relief in electricity bills, The International Monetary Fund (IMF) has approved a relief proposal for consumers using up to 200 units, allowing the authorities to collect electricity bills in installments.
“The final approval to collect bills in installments will be taken from the federal cabinet,” the sources said, adding that about 4 million electricity consumers are likely to get temporary relief from this initiative.
However, the Fund rejected the interim government’s plan to provide relief to those consuming up to 400 units of electricity per month, according to the sources, adding that 32 million consumers would have benefited if this proposal had been approved.
They also stated that the Washington-based lender emphasized the importance of cracking down on electricity and gas thieves and improving recovery.
Also read: Pakistan requests IMF about relief in energy prices amid protests
As IMF approves Rs 15 billion relief in electricity bills, according to the sources, the Fund has also requested a 45 to 50% increase in petrol tariffs beginning July 1. The increase in petrol tariff, however, is subject to approval by the federal cabinet.
Following months of street protests by citizens and traders against exorbitant increases in power bills and taxation, the caretaker Prime Minister Anwaar-ul-Haq Kakar-led setup in Islamabad has been attempting to entice the global lender to agree to provide immediate relief for electricity consumers in the cash-strapped country, where people are already battered by skyrocketing inflation.
It is important to note that the South Asian country is under IMF supervision, and any relief or subsidies must be approved by the IMF.
As people took to the streets to protest the inflated power bills, both sides engaged in heated negotiations.
