The International Monetary Fund (IMF) has requested Pakistan to hike energy tariffs by Rs. 5 per unit by July 10, 2024, to qualify for a new program.
This will be another hard pill to swallow for the government to increase the electricity rates as they have already skyrocketed the electricity rates in Pakistan.
According to the media, the lender has established electricity and gas price rises as previous steps for the new program, therefore an increase in electricity rates is almost certain.
According to sources, Pakistan has also urged the IMF to disburse extra cash for the next program because the government has met all of the lender’s requirements in the current fiscal year’s budget.
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Pakistan wants $8 to $10 billion from the new program, but the IMF is only ready to offer $6 to $7 billion, according to sources.
It is important to highlight that Pakistan has met all of the IMF’s requirements, and the lender is happy with the budget approval from parliament.
Recently, the ECC maintained household gas pricing while approving an increase in gas tariffs for captive power plants.