IMF has rejected the caretaker Pakistan’s government plan to assist in electricity consumer bills.
According to Ministry of Finance sources, the IMF, while rejecting the idea, noted that the relief plan would have an effect of more than Rs15 billion, rather than Rs5 billion, as Pakistan outlined in the proposal.
The Pakistan’s government notified the IMF in the proposal that the relief measure would impact less than Rs6.5 billion. On the other hand, the IMF estimated the effect to be around Rs15 billion and disregarded the idea as a result.
According to the sources, the IMF has also required a strategy for collecting these Rs15 billion in tax income, causing a delay because a fresh plan must be provided with the IMF.
After the revised plan’s release, negotiations will occur between IMF officials and the Ministry of Finance, reported by The Express Tribune.
According to the sources, the caretaker administration has informed the lender that the planned relief will not impact the budget. It has also asked the IMF for permission to pay its electricity bills in four monthly payments.
The Finance Ministry and IMF officials will resume negotiations after communicating the revised proposal with the global lender.
According to reports, Pakistan has promised the IMF that granting relief for inflated electricity bills will not result in a budget deficit.
The IMF was asked to endorse a scheme allowing consumers to pay their power bills in four monthly payments.
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