No relief in electricity bills without IMF’s approval

After country-wide protests against unprecedented hikes in electricity bills, Pakistan’s caretaker government has approached the International Monetary Fund (IMF) to seek approval before announcing any relief for the people.

According to Geo News, the IMF asked Pakistan to share a written plan for relief on Wednesday.

On Tuesday, the federal cabinet had a meeting with interim Prime Minister Anwaarul Haq Kakar to take into consideration all possible options but no decision was officially announced.

The Power Division has shared proposals with the authorities but first, the IMF is to be taken on board as loans from the Fund bear strict conditions.

In July, a $3 billion loan agreement was signed with the IMF with stringent financial regulations to be followed during the programme.

Under the bailout package, the former government of Pakistan Democratic Movement (PDM) approved a stark increase in electricity rates, resulting in increased bills.

As reported by Geo News, Finance Minister Shamshad Akhtar had a virtual meeting with IMF representative Esther Perez to discuss relief measures.

They were made aware of the current situation and continuing protests across the country.

While the Pakistan team submitted various proposals for relief in electricity bills, IMF officials requested the relief plan in writing which, according to Geo, will be shared today.