Pakistan has put forward a plan to the International Monetary Fund (IMF) aiming to reduce electricity prices by Rs6 per unit. The proposal involves injecting Rs2.8 trillion into the energy sector. However, the plan’s reliance on uncertain funding sources might delay or prevent its approval by the IMF.
The federal government has indicated that half of the required funds, Rs1.4 trillion, would be provided by all four provinces, including Khyber Pakhtunkhwa (K-P). However, the K-P government, led by Pakistan Tehreek-e-Insaf (PTI), has refused to contribute its share.
Over the weekend, Pakistani officials discussed this proposal with IMF representatives, but no agreement was reached. The IMF has asked for more details before making any decisions.
In addition to the price reduction, the government has also suggested cutting electricity costs by Rs5.80 per unit. This would be achieved by renegotiating contracts with local and government-owned power producers, shutting down inefficient power plants, and paying off Rs2.7 trillion in existing debt.
