- IMF approval to facilitate the burden of the masses affected by inflation.
- The announcement of the rescue package awaits the approval of the IMF.
- Users of 500 units to obtain a reduction in RS500 electricity bills.
Islamabad: The International Monetary Fund (IMF) has approved a RE1 reduction per unit of electricity prices, relieving all consumers.
The price relief, in accordance with IMF managers, will be extended to all electricity users and will be funded by the income generated by the levy imposed on captive power plants using gas.
The development follows the staff level agreement (SLA) between the lender based in Washington and the Pakistani authorities concerning the first examination of the rescue program in the course of 37 months.
The agreement, awaiting the approval of the IMF executive committee, will see Islamabad obtain access to approximately $ 1 billion under prolonged fund (EFF), bearing total disbursements under the program to around $ 2 billion.
Meanwhile, with regard to the reduction in the power rate, the lender said that this measure aims to compensate for financial pressures while maintaining budgetary stability.
In addition, the government is also working on a wider rescue set for electricity consumers, which will be announced with IMF approval.
Sources indicate that the reduction in the price of electricity by RE1 per kilowatt should facilitate the financial load of consumers of approximately 100 billion rupees in total. An average cleaning consuming 500 electricity units per month, would see a reduction in RS500 in their electricity bill under the revised rate.
IMF approval of electricity prices reduces days after the Minister of Power Awais Leghari ensured the government’s commitment to reduce the prices of power affirming that the reduction would occur at the “good time”.
“We maintain our commitment. Our commitments are not like those of the previous government,” said the minister, adding that Prime Minister Shehbaz Sharif would soon announce the “good news”.
It is relevant to know that even independent electricity producers (PPI) have proposed to reduce electricity prices to RE0.50 per unit and to renounce more than RS11 billion late payment cabbage – provided that the Government withdraws all legal proceedings and current investigations on alleged excessive benefits.
Meanwhile, the government is also working on the finalization of negotiations with 75 other electricity producers – mainly solar and wind – at the end of April or May after having concluded talks with 29 PPIs which would allow 3.498 Billions of RS rupees, despite the international resistance in some cases.