The International Monetary Fund (IMF) has told the Pakistani authorities of its plan to release the next bailout package under specific conditions which Pakistan would have to fulfil like increasing revenue and curtailing government expenditure.
“The government will have to hike electricity and gas tariffs in coming July and August 2024 to strike a deal with the IMF,” Geo news reported.
If approved, the fresh bailout package through climate finance would range from $6 to $8 billion.
The government would also have to present an aligned budget and secure its approval from the parliament.
The IMF has asked the government to raise the power tariff by jacking up fuel price adjustments and quarterly tariff adjustments. The tariff on gas will also be increased.
On solar net metering, the government has decided to hire a Chinese consultant and others to study it independently because the net metering system is reportedly causing harm to distribution grids.
