IMF rejects Pakistan's relief plan for power consumers

The International Monetary Fund (IMF) has turned down a relief plan submitted by Pakistan's caretaker government aimed at assisting power consumers, media reports said citing sources. According to the sources from Pakistan's Ministry of Finance cited by The Express Tribune media outlet, the IMF rejected the proposal, asserting that its actual impact would surpass the suggested PKR 5 billion, estimating it to be over PKR 15 billion.

IMF's demand for tax revenue plan

Moreover, the IMF has insisted on a detailed strategy for generating this PKR 15 billion in tax revenue, leading to a delay as a revised plan must be presented to the IMF. Subsequent discussions are anticipated between IMF representatives and the Pakistan's Ministry of Finance.

Pakistan government assurances

Sources cited by various media outlets also revealed that the caretaker government assured the IMFthe proposed relief measures would not disrupt the budget. Additionally, it requested permission from the IMF to allow power bills to be paid in four monthly installments.

Action against power theft

In a related development, caretaker Prime Minister Anwaar-ul-Haq Kakar issued immediate directives to take action against individuals involved in power theft.

He reportedly instructed relevant authorities to submit daily reports on progress. The prime minister also stressed the need for swift action against defaulters and stressed that there should be no leniency toward those engaged in power theft and defaulting.

Economic stability strategy

Separately, Prime Minister Kakar instructed the Ministry of Finance to develop an effective strategy for achieving economic stability in the country.

During a meeting with Interim Finance Minister Shamshad Akhtar, the finance minister briefed the prime minister on the current economic situation. Kakar affirmed his government's commitment to exploring innovative solutions to provide relief to electricity consumers.

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“The government would make informed decisions to satisfy the masses on the issue of electricity bills without deviating from the country’s commitments with the international financial institutions,” the interim PM added.

Meanwhile, the Pakistan rupee hit a new record low to 20 percent in 2023. There's no let-up from the economic crisis as the country battles record-high inflation and falling foreign reserves.

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