Power tariff will be increased further from 1st July 2024 as the federal government has assured the IMF Mission team that to curb rising circular debt.
A private TV channel has reported that the government intends to raise power tariffs on both a monthly and quarterly basis beginning in July 2024.
Following several productive negotiations with Pakistani authorities, the International Monetary Fund (IMF) is poised to finalize a staff-level agreement with Pakistan, scheduled for tomorrow (Monday). A spokesperson from the Finance Ministry revealed to the media that the staff-level agreement, expected to be inked on Monday, will pave the way for Pakistan to receive the final tranche of $1.1 billion under the standby agreement.
In addition to commitments on power tariff adjustments, Pakistan has pledged to maintain a stringent monetary policy and stabilize the market exchange rate, as assured to the international lender, the IMF.
During discussions held on March 15th and 16th with officials from various departments, the IMF team received assurances from the government regarding the scheduled increases in power tariffs as part of fuel adjustments to mitigate circular debt. Furthermore, the government committed to taking measures to formalize the economy, thereby expanding the tax base as advocated by the IMF.
The IMF also stressed the importance of safeguarding beneficiaries of the Benazir Income Support Programme (BISP) while urging the government to enhance the number of beneficiaries by June 2024.
