IMF further squeezes govt, ‘asks to slap Rs3 per unit power surcharge’
LAHORE (MNP) – The International Monetary Fund (IMF) has recently asked Pakistan to slap a power surcharge of approximately Rs3 per unit on consumers for recovery of piled markup on the Power Holding Company.
A news published in a section of media reported that the government was hopeful that all Chinese matured loans would be re-financed soon.
Quoting sources the report narrated that two more commercial loans were expected to be re-financed including $500 million and $800 million respectively.
So in totality, Pakistan is eyeing to get re-financing of Chinese loans up to $2 billion by the end of February or the first week of March 2023.
However, the cash-strapped power sector has become one of the major stumbling blocs on the way to signing a staff-level agreement with the IMF.
The government will have to make up its mind about slapping another surcharge on the power sector for moving towards striking a much-awaited staff-level agreement (SLA), the news report further narrated.
On February 12, the federal cabinet had approved the revised circular debt management plan for power through circulation under which the government will increase power prices and end subsidies to pacify IMF.
According to sources, under the plan, the government will increase the electricity price by Rs7.91 per unit in four quarterly adjustments – Feb-March 2023, March-May, June-August and September-November to meet the tough conditions of the IMF.
Sources claimed that the federal cabinet also approved the withdrawal of electricity subsidy of Rs65 billion given to the exporters and farmers, with effect from March 2023. The subsidy of Rs12.13 per unit on electricity given to export sector will be withdrawn, they added.
