IMF nod awaited to provide relief to consumers using up to 300 units in Oct bills

In the midst of national protests over rising electricity rates, the caretaker administration has purportedly devised a plan to provide assistance to power consumers.

According to sources, the interim administration has decided to pay up to Rs3,000 in compensation to clients who use up to 300 units in their October electricity bills.

Similarly, power consumers with rates ranging from Rs60,000 to Rs70,000 will benefit from a Rs13,000 cut, according to sources.

Meanwhile, officials say talks are continuing between the International Monetary Fund (IMF) and the caretaker administration to provide assistance to electricity consumers.

Meanwhile, The News stated that the Washington-based global lender has requested additional data from the Power Division in order to make a decision on numerous proposals filed to the Fund seeking respite from increasing costs for August and September.

“We have shared the necessary data with the Fund people in the hope that the IMF will respond today (Monday) with a yes or no to the assertions of the Finance and Power Divisions, seeking permission for relief to inflation-stricken people in electricity bills,” some top IMF sources told.

“At the moment, officials from both the Power and Finance divisions are in frantic talks with Fund representatives about data related to proposed measures for tariff relief and their potential impact on circular debt, cash flow situation, and further delays to IPPs, ultimately making the power sector more unsustainable.”

Following continuous street protests by citizens and traders against exorbitant hikes in power bills and taxation, the caretaker Prime Minister Anwaar-ul-Haq Kakar-led setup in Islamabad has been attempting to entice the global lender to agree to provide immediate relief for electricity consumers in the cash-strapped country, where people are already battered by skyrocketing inflation.

On August 31, the interim premier claimed that the Fund would approve the government’s relief-related proposal aimed at delivering assistance to the public within 48 hours, but it remained silent after the deadline passed.

The IMF was previously briefed on the proposed tariff reduction, which would reduce some of the tariff — up to 30% for August and September — and pass the savings on to consumers over six months of the winter season, from October 2023 to March 2024.

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