The International Monetary Fund (IMF) has purportedly instructed Pakistan to abstain from granting any concession to power consumers who consume more than 200 units monthly.
IMF forewarned that any proposed relief on electricity bills could prevent a decrease in the circular debt, a concern echoed by multiple sources familiar with the matter.
The IMF has stipulated that only those consumers who have consistently utilized less than 200 units for six months would be eligible for any deferment in bill payments. Moreover, the sources noted that this concession will be withdrawn if a consumer’s usage exceeds the 200-unit threshold within six months.
Government’s Interaction with IMF
Contradicting reports of the IMF’s outright rejection of proposals for augmenting subsidies in power tariffs, Pakistan’s Ministry of Energy and Petroleum highlighted ongoing dialogues with the international entity.
The Caretaker Minister for Energy and Petroleum, Muhammad Ali, conveyed that the administration shares data on electricity bills with the IMF daily.
Ali emphasized that the government is contemplating strategies to postpone the payment of August’s electricity bills, which necessitates securing additional funds. He underscored that this financial manoeuvre would also entail compensating for the ensuing losses, adding another layer to the economic complexities faced by the government.
 has allegedly cautioned Pakistan against providing relief to power consumers utilizing over 200 units monthly, fearing an increase in circular debt. Explore the latest developments and the government's response in our comprehensive report.){kind=link}