IMF refuses to given concession to power consumers

ISLAMABAD: Electricity consumers should not expect any relief as negotiations between the International Monetary Fund (IMF), the Ministry of Finance and the Ministry of Energy failed to yield any results with the international lender asking Pakistan to withdraw the special concessions given to industries generating their own electricity.

According to sources in the Ministry of Finance, the IMF has called for an immediate increase in gas tariff for electricity-producing industries from July 2023.

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According to sources, the IMF has demanded a contract based on five conditions from the Ministry of Finance and the Ministry of Energy, and the withdrawal of concessions given to power producers being one of them.

The IMF has stated that gas rates should be increased immediately for power producers like other consumers, and it should be implemented from July 2023, ending concessions for power producers.

Sources said that the Ministry of Finance has sought time to announce relief and asked the IMF for time to implement its conditions. The IMF has instructed the Ministry of Finance to correct the power sector’s system to provide relief to consumers.