IMF allows Pakistan to reduce electricity tariff by Re1 per unit
Business
Revenue generated through the levy on captive power plants would be utilised for relief to masses
ISLAMABAD (Dunya News) – The International Monetary Fund (IMF) has allowed the Pakistan government to reduce the electricity tariff by Re1 per unit.
The relief will be provided as part of the basic tariff for electricity units while the amount for it will be arranged from the revenue generated through the levy on captive power plants. A levy has been imposed on the use of gas by captive power plants.
The government is also working on a relief package for electricity consumers, and it would be announced after getting approval from the global lender.
The move comes days after the International Monetary Fund (IMF) and Pakistani authorities reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF).
An IMF team, led by Nathan Porter, held discussions during a February 24 to March 14, 2025 mission visit to Karachi and Islamabad, and virtually thereafter, for the first review of Pakistan’s economic programme supported by the Extended Fund Facility (EFF) and on a new arrangement under the IMF’s Resilience and Sustainability Facility (RSF).
The IMF team reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF), and on a new 28-month arrangement under the IMF’s RSF with total access of around $1.3 billion (SDR 1 billion).
The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the programme to about US$2.0 billion.
