ISLAMABAD: The federal government has assured the International Monetary Fund (IMF) of increasing electricity and gas rates.
According to the sources, the IMF has also demanded to increase the gas prices on half-yearly basis from June 2024 and to stop electricity theft, to improve the transmission system. The IMF says that the notification of annual rebasing of electricity tariff in the year 2024-25 should be issued in a timely manner, while the revision of power purchase agreements and reforms in the subsidy of agricultural tube wells have also been demanded.
According to the sources, the revolving debt of the gas sector was 2083 billion rupees till January 2024. The IMF has demanded that all fertilizer companies charge the full cost of gas. A plan has been prepared.
Revolving credit in the power sector was more than 2600 billion rupees. The government has prepared a reform plan to reduce the revolving debt or maintain stock in the financial year 2024-25. The IMF has emphasized to meet the target of 2300 billion revolving credit in the power sector by June. Government has assured to introduce uniform gas price for cost recovery. IMF says that the protection of poor households should be ensured at the time of adjustment in electricity and gas tariffs.
