The Fund expresses concerns that reducing electricity bills for such consumers will not effectively address the circular debt issue in the country.
ISLAMABAD: (UrduPoint/Pakistan Point News-Sept 20th, 2023) The International Monetary Fund (IMF) opposed Pakistan's plan to provide relief to power consumers who use over 200 units of electricity monthly, a local private tv reported on Wednesday.
The IMF expressed concerns that reducing electricity bills for such consumers would not effectively address the circular debt issue in the country.
Under the proposed plan, relief in the form of deferred bill payments would only be granted to consumers who consistently use under 200 units of electricity for a continuous six-month period.
However, if a consumer's usage surpasses 200 units within six months, the relief would be withdrawn.
Earlier, the Caretaker Minister for Energy and Petroleum, Muhammad Ali, clarified that the IMF had not outrightly rejected the proposal to offer additional subsidies on power tariffs amidst public protests against inflated electricity bills.
During an appearance on a news program, the minister emphasized that the government maintained daily communication with the IMF, sharing data on electricity bills.
He also highlighted the need for the government to secure funds in order to defer the electricity bill for August, while acknowledging that doing so would entail covering the associated losses.
