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After the International Monitory Fund( IMF) rejected the tax reduction plan to reduce electricity prices, the federal government has prepared a new plan under which the basic tariff will be reduced by Rs8-10 per unit and the volume of circular debt will be eliminated, an Englidah Daily reported on Friday while quoting reliable sources.
Under this plan, the financial capacity created by the reduction in debt repayments by Rs1.3 trillion will be used to address the ongoing financial losses in the power sector, the report stated.
As per the report, a senior government source confirmed that a major part of this available financial capacity, about Rs1 trillion, will be used to eliminate the stock of circular debt.
The government source said that the IMF review mission will visit Islamabad in the first few dates of next month, i.e. from March 4, 2025, to hold talks on the first review of the $7 billion Extended Fund Facility (EFF).
It should be noted that Pakistani people are facing record-expensive electricity and as a result, most of the common people are unable to pay their inflated electricity bills due to which the government is under pressure to reduce the prices.
