The International Monetary Fund (IMF) has allowed the Pakistan government to reduce electricity rates in RS1 by kilowatt-Hora for all consumers.
The relief will be financed through the income collected through a tax on captive electrical plants using natural gas, the IMF said in a statement.
The measure is part of a broader aid package in which the government is working for electricity users.
According to official sources, the reduction could reduce financial burden for consumers by up to RS100 billion. A home that consumes 500 electricity units would see a monthly savings of RS500 under the new plan.
The relief will be financed through the income generated from a gas tax tax consumed by the electrical plants. The IMF declared that the decision is part of the current reforms in the energy sector.
The development occurs days after Pakistan and the IMF reached an agreement at the personnel level, unlocking access to an additional $ 1 billion under the installation of extended funds (EFF).
According to the IMF, inflation in Pakistan has reached its lowest point since 2015, and the country’s economic indicators show signs of additional improvement.
The IMF Executive Board will approve the second section of the EFF of $ 1 billion and the new RSF installation of $ 1.3 billion, either at the end of April or early May, according to the Pakistani authorities.
However, the fund will release only $ 1 billion, while $ 1.3 billion will be administered for a period of 28 months and subject to implement around 13 conditions, including carbon tax.
