The International Monetary Fund (IMF) has allowed Pakistan to delay the payment of energy bills for users consuming up to 200 units over three months. In exchange, Pakistan must declare a 50 percent hike in gas prices and a crackdown on electricity theft.
Well-informed sources told ProPakistani that this agreement is currently awaiting approval by Caretaker Prime Minister Anwaarul Haq Kakar and his cabinet.
The IMF has tentatively approved a three-month payment plan for August power bills for consumers who are not eligible for subsidies and use up to 200 monthly units. However, this leeway will not be available to lifeline users or those protected from price hikes.
Sources indicate that while the government’s request for a blanket relief program for consumers up to 400 units was denied, those using up to 200 units will now be allowed to pay their bills in installments. This relief will be applicable for the billing cycle in August 2023. Additionally, late bill payments will not incur a 10 percent additional penalty. Approximately 4 million electricity consumers stand to benefit from this measure, pending final approval from the Prime Minister and the Federal Cabinet.
The government first requested to spread out bills for bills up to 400 monthly units, which would have covered 81 percent of the total consumer base, but the IMF rejected this request.
In return, the lender has mandated that Pakistan simultaneously launch a crackdown on power theft and low bill recoveries, and, most importantly, raise gas prices.
The IMF has encouraged Pakistan to raise gas rates, which have already been established by the Oil and Gas Regulatory Authority but are awaiting approval. The lender has also directed the use of the weighted average cost of gas (WACOG) method to completely recover imported gas prices from consumers. This would entail calculating the gas price by taking into account both imported LNG and local gas rates, estimating an average price and setting consumer-specific prices accordingly.
The IMF has also urged Pakistan to increase efficiency by cracking down on electricity theft and recovering past arrears.
Notably, improved recovery efforts in both the electricity and gas sectors could potentially reduce the need for revolving credit, thereby contributing to the financial stability of these essential services.
IMF never asks to increase Petrol, GAs or electricity charges. They only requires how to pay back loan. This is the Government who give them plan how n what they recover and pay backk
These all are currupt
They are just playing games. The state & its institutions are the biggest thieves of electricity plus their corporate associates that collect huge subsidies. They must pay their own bills & stop burdening the public.
Why don’t IMF enforce to reduce the multiple dozens of ministries?. They must direct for the reduction of operational cost required to run these futile ministries.
Take the subsidy from the cantonments and the elite classes house, factories and business. When there is no money everybody needs to suffer not only the poor people
Why don’t IMF enforce the government to not to give any benefits to the government ministries and employees. They are using everything for free while there pay is more than 5 lakhs. Are they Orphans???
Balls!!
Pakistan is in dire straits due to rampant corruption, Ill planning and bad governance. We as a nation are all responsible for this.
Common people need permanent relief not temporary. Perks and benefits of ashrafia should be abolished.