Sources told Geo News that the International Monetary Fund (IMF) has given the green light to a relief proposal for consumers using up to 200 units, allowing authorities to bill money electricity in batches.
However, the care government’s plan to provide assistance to those consuming up to 400 units of electricity per month was rejected by the Fund, the sources added.
Final approval of the staggered bill recall will be given by the federal cabinet,” the sources said, adding that about 4 million electricity consumers could receive temporary assistance. through this initiative.
However, sources said, if support is provided to those consuming up to 400 units of electricity, 32 million consumers could benefit.
They added that the Washington-based lender had emphasized the need to crack down on electricity and gas thieves and improve debt collection. Separately, sources said the IMF has also asked for a 45-50% increase in gas tax from July 1. However, the increase in gas prices must be approved by the federal cabinet.
After continuous protests by residents and traders, who took to the streets against sky-high electricity bill hikes and additional taxes, the formation was led by interim Prime Minister Anwaar-ul-Haq Kakar in Islamabad has tried to persuade the global lender to agree to provide immediate relief to electricity consumers in the cash-strapped country, whose people have been hit by hyperinflation.
It is important to note that this South Asian country is part of an IMF program and any bailout or subsidy must be approved by the IMF.
The two sides have been conducting intense negotiations to find a solution to rising electricity bills amid nationwide protests.
