Inflated electricity bills; New relief plan sent to IMF

New relief plan sent to IMF

ISLAMABAD: The caretaker government decided to once again pursue the International Monetary Fund (IMF) to provide some subsidies to citizens of Pakistan on inflated electricity bills. In the fresh proposal, sent to the International Monetary Fund (IMF), the caretaker government has stated that adjustments could be made to the additional money allocated for the Independent Power Producers (IPPs) to provide relief to the consumers.

News reports stated that after receiving instalments from the bills, an amount of more than Rs15 billion would be allocated back to IPPs. Reports added that officials from the finance ministry would discuss the fresh plan with the IMF. The global money lender has been assured that no relief would be provided by going over the budget.

Earlier, the IMF rejected the initial subsidy plan sent by the caretaker government to provide relief to the power consumers over the inflated electricity bills. IMF stated that the first plan would have an impact of over Rs15 billion and demanded a proposal that explains how Pakistan would cover the fiscal space of Rs15 billion.

The massive increase in the electricity price has triggered protests across Pakistan and sparked chances of civil disobedience. Tensed by high bills, people are burning utilities, attacking offices of power companies, and blocking highways.

A complete shutter-down strike was observed in Azad Jammu & Kashmir (AJK) against exorbitantly high electricity bills & exceeding inflation. Thousands of people protested in the form of rallies and observed sit-ins across the region.

Similarly, thousands of traders across Pakistan initiated a shutter-down strike claiming that it was impossible to cope with soaring inflation. People are unable to manage high electricity bills and are further frustrated by the recent hike in the prices of petroleum products. The dollar rate is another issue that is creating problems for the business community and the Pakistan Stock Market.

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