The International Monetary Fund (IMF) has reportedly urged Pakistan to raise the electricity tariff by Rs. 5 per unit before July 10, 2024, as a prerequisite for entering into a new program with the lender. This increase in electricity prices, along with hikes in gas prices, has been outlined as essential steps or “prior actions” for the initiation of the new IMF program.
Sources familiar with the matter have indicated that Pakistan has fulfilled all the conditions set by the IMF in its current year’s budget, leading to satisfaction from the lender regarding budgetary approvals by the parliament. However, negotiations continue regarding the amount of financial assistance under the new program. Pakistan is seeking between $8 to $10 billion, while the IMF is inclined to offer $6 to $7 billion.
Read More: The government raises gas tariffs for the general industry to secure the IMF package
In recent developments, Pakistan’s Economic Coordination Committee (ECC) opted to maintain gas prices for residential consumers but approved an increase in tariffs for captive power plants. These decisions reflect ongoing efforts to comply with IMF conditions and secure necessary funding amid economic challenges.
