The International Monetary Fund (IMF) has allowed Pakistan to reduce electricity tariffs following negotiations for the second tranche of $1 billion under the $7 billion Extended Fund Facility (EFF).
During talks, the Ministry of Energy proposed cutting base tariffs by up to Rs2 per unit starting in April or May—a move approved by the IMF, pending final decisions by NEPRA and the Ministry of Energy.
Pakistan also shared its privatization plan for power distribution companies (DISCOs), but the IMF raised concerns over delays and sector inefficiencies. The lender also opposed proposed amendments to the NEPRA Act.
Further discussions on circular debt, tax policies, and sovereign wealth fund management are set for today, with an IMF delegation possibly returning after Eid to focus on governance reforms.
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