Inflated electricity bills: IMF asks Pakistan to share relief plan in writing

The IMF has asked Pakistan to submit a written plan for providing relief in electricity bills, as protests continue across the country, after the caretaker government decided to seek the lender's approval before announcing any measures.

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Relevant topic timeline:

8/26/2023

IMF’s nod essential for giving relief in electricity bills: Miftah Ismail

Former finance minister Miftah Ismail reveals that the caretaker government in Pakistan must seek permission from the International Monetary Fund (IMF) before giving relief to consumers facing inflated electricity bills, and urges political leadership to come up with a strategy to collect taxes from the rich.

9/1/2023

Consumers have no option but to pay bills: PM

Interim Prime Minister Anwaarul Haq Kakar urges people to pay their utility bills and announces plans for a relief package regarding future electricity consumption, blaming past governments for the economic mess and promising reforms in various sectors; the government is also in negotiations with global lenders on the power bill issue.

9/3/2023

Inflated electricity bills: PM's 48-hour deadline to announce relief expires as IMF nod awaited

The International Monetary Fund (IMF) has not granted assent to Pakistan's request for deferment of electricity bills, leading to a failure to provide relief to power consumers within the stipulated 48-hour deadline given by the caretaker Prime Minister.

9/4/2023

‘Consumers using up to 300 units to get Rs3,000 relief in power bills’

The caretaker government in Pakistan plans to provide relief to power consumers, with a reduction of Rs13,000 for those with bills ranging from Rs60,000 to Rs70,000, amid nationwide protests over increased electricity bills; talks between the government and the IMF are underway on the matter.

9/5/2023

IMF rejects Pakistan's tariff adjustment plan amid inflation woes

The IMF has rejected Pakistan's proposal for tariff adjustment or additional subsidy, making it more challenging for the country to manage its economic challenges amidst rising inflation.

9/5/2023

Pakistan amidst a polycrisis

The caretaker government in Pakistan must seek approval from the International Monetary Fund (IMF) before providing any relief in electricity bills, as the country needs to maintain its IMF agreement to address its balance-of-payments challenges and regain the trust of investors, which is crucial for stabilizing the value of the rupee and preventing further depreciation. The depreciation of the rupee has significant implications for the electricity sector, leading to higher fuel import bills and capacity payment charges, resulting in higher electricity bills for consumers. The government relies on electricity bills to generate revenue through taxes and surcharges, exacerbating the financial burden on consumers. To address these challenges, the caretaker government should focus on enhancing revenue mobilization, reducing expenditures, and improving the inflow of dollars through exports and remittances. Additionally, the government should consider privatizing loss-making public-sector enterprises and reducing inefficiencies in the power system to lower the unit cost of electricity. The government should also secure pledges for flood rehabilitation and disaster preparedness projects to access funds from international financial institutions.

9/8/2023

Pakistan's Interim Government Focuses on Reviving Economy and Fulfilling IMF Agreements

Pakistan's interim government is prioritizing economic revival and fulfilling international obligations, including agreements with the International Monetary Fund (IMF), to address the stagnant economy and financial issues. They aim to improve the overall business and investment environment, increase inflow of dollars from multilateral institutions, and reduce expenditures while upholding international agreements.

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Posted 8/30/2023, 7:21:00 AM

Inflated electricity bills: IMF asks Pakistan to share relief plan in writing

geo.tv

Relevant topic timeline:

8/26/2023

IMF’s nod essential for giving relief in electricity bills: Miftah Ismail

9/1/2023

Consumers have no option but to pay bills: PM

9/3/2023

Inflated electricity bills: PM's 48-hour deadline to announce relief expires as IMF nod awaited

9/4/2023

‘Consumers using up to 300 units to get Rs3,000 relief in power bills’

9/5/2023

IMF rejects Pakistan's tariff adjustment plan amid inflation woes

The IMF has rejected Pakistan's proposal for tariff adjustment or additional subsidy, making it more challenging for the country to manage its economic challenges amidst rising inflation.

9/5/2023

Pakistan amidst a polycrisis

9/8/2023

Pakistan's Interim Government Focuses on Reviving Economy and Fulfilling IMF Agreements