Islamabad, 7 September, 2023 (GNP): In response to nationwide protests over bloated electricity bills, the International Monetary Fund (IMF) has approved temporary relief measures for electricity consumers in Pakistan.
The relief plan, which has received the finance ministry’s endorsement, will be presented to Caretaker Prime Minister Anwaarul Haq Kakar for cabinet approval via summary circulation.
However, this relief will only apply to consumers using up to 200 units of electricity, excluding households in the 201 to 400 unit category. For those consuming up to 200 units, late surcharges are waived for unpaid August bills, and they are permitted to pay in installments.
Approximately four million consumers will benefit from this move, but the inclusion of those consuming up to 400 units would have extended relief to 32 million.
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To address power theft and reduce national exchequer losses, the government has announced a countrywide crackdown on smugglers and power thieves.
The annual loss due to electricity theft and unpaid bills currently amounts to Rs589 billion. The Ministry of Finance has also acknowledged that August’s significant fuel and power tariff increases will contribute to rising inflation, indicating policy challenges linked to IMF conditions.
As a result of IMF-guided policies, fuel and energy price hikes have fueled inflation and hindered economic growth, leading to a decline in electricity consumption, highlighting the policy challenges faced by the nation.
