ISLAMABAD: Officials have shared their plan with the International Monetary Fund (IMF) to provide relief to the country burdened by high electricity bills, JEE News reported on Thursday.
However, the fund has been assured that none of its goals will be compromised by the previous government.
Caretaker Finance Minister Dr Shamshad Akhtar said on Wednesday that a team comprising Pakistani officials met with IMF officials. Although she was not part of the team in talks with the lender, she reiterated Pakistan’s commitments to adhere to the IMF program.
Sources inside the finance ministry say that the contingency provision of Rs 250 billion in the IMF program in the 2023-24 budget can be used to provide relief to power consumers.
However, it will take some time to convince the IMF on the proposed relief package, which may be limited to consumers of up to 400 units.
Billing surprises will also be done while allocating funds for the purpose of contingency money of Rs 250 billion allocated in the 2023-24 budget may reduce the bills of some protected consumers.
“But the money will be used only for consumers of slabs up to 400 units with IMF permission,” said a top government source while talking to JEE News on Wednesday.
When contacted, a senior official involved in the talks with the IMF said that the current primary surplus of 0.4 per cent of GDP, along with the fixed target for accumulation in the circular debt, is due to electricity subsidies. will not violate the objectives set by the IMF. fiscal year.
The official admitted that he did not share the plan with the IMF in writing which, according to economists, could further delay the proposed relief package for power consumers.
Pakistan has been gripped by high inflation, especially exorbitant electricity bills, which has led to nationwide protests for the past five days, with people burning bills in public and refusing to pay them.
The caretaker government, which convened an emergency meeting following the protests, failed to come up with a solution to provide immediate relief to the people and decided to seek IMF approval before approving any proposal.
The Washington-based lender asked Pakistan to share a plan in writing to provide relief in power bills.
