4 million electricity consumers likely to get temporary relief under new plan
IMF rejects proposal granting relief to those consuming up to 400 units, emphasises need to curb electricity theft
September 07, 2023
- Final approval to collect bills in installments to be taken from cabinet.
- 32 million consumers could have benefited if relief was granted up to 400 units.
- Fund demands increase of 45 to 50% in gas tariff from July 1: sources.
ISLAMABAD: Following intense talks regarding inflated electricity bills amid countrywide protests, the International Monetary Fund (IMF) greenlit the relief proposal for consumers using up to 200 units, allowing the authorities to collect electricity bills in installments, sources told Geo News Thursday.
"The final approval to collect bills in installments will be taken from the federal cabinet," the sources said, adding that about 4 million electricity consumers are likely to get temporary relief from this initiative.
However, the interim government's plan to provide relief to those consuming up to 400 units of electricity per month was rejected by the Fund, the sources said, adding 32 million consumers could have benefited had this proposal been approved.
They added that the Washington-based lender had emphasised the need to crack down on electricity and gas thieves and improve recovery.
Moreover, the sources said that the Fund had also demanded an increase of 45 to 50% in gas tariff from July 1. However, the hike in gas tariff is subject to the approval of the federal cabinet.
Following continuous protests by citizens and traders, who have taken to the streets against the exorbitant hikes in power bills and addition of taxes, the caretaker Prime Minister Anwaar-ul-Haq Kakar-led setup in Islamabad has been trying to woo 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.
It is important to note that the South Asian nation is under an IMF programme and any relief or subsidy is subject to its approval.
Both sides have been engaged in intense talks as people took to the streets to protest the inflated power bills.
