IMF rejects Pakistan's proposal to reduce power tariffs

Recently, the International Monetary Fund (IMF) has declined the government's proposal to reduce power tariffs for industries in Pakistan. The suggestion aimed to shift the cost burden onto consumers using up to 200 units of electricity per month by introducing fixed charges to their bills.

According to officials from the energy ministry, the IMF was informed that power distribution companies had requested an increase in electricity tariffs. This adjustment could potentially raise tariffs by Rs5 to Rs7 per unit as part of the annual base tariff revisions.

This decision comes after discussions between the government and the IMF regarding further engagements with the fund. Despite the government's efforts to lower power tariffs for industries, the IMF has not approved the proposed changes.

The rejection of the proposal to lower power tariffs by the IMF highlights the challenges faced in balancing the needs of industries and consumers in Pakistan. As electricity tariffs may increase for consumers, it is essential for stakeholders to find sustainable solutions that ensure fair pricing and reliable energy supply for all.