Islamabad: Recently, the government informed the media sources that Pakistan has met two conditions set by IMF (International Monetary Fund) about the quarterly increase in the power tariffs as well as one-off payments to over five million social safety net beneficiaries.
Pakistan was required by the International Monetary Fund to notify in the second quarter to increase the power tariffs and also disburse PKR 1,000 per person to BISP (Benazir Income Support Program) beneficiaries before the end of the month August.
The quarterly adjustment in the power tariffs was done by the Nepra (National Electric Power Regulatory Authority) by the due date and also the compensation of PKR 1,000 was paid to the BISP beneficiaries, Special Secretary and Spokesman for the Ministry of Finance; Omar Hamid Khan quoted as per the report.
As par the part of the IMF Program prior actions, the government automatic quarterly tariff adjustments with the first increase of PKR 1.5 per unit for generating PKR 189 billion through additional revenue that was in effect from 1 July 2019.
The International Monetary Fund (IMF) Program seeks to completely eliminate the circular debt by the month of December in the next year. As per the report, the finance ministry informed that the revenue impact of the increase in tariffs on the account of quarterly adjustment will be shared once the data was also received from the power distribution companies.
As per the deal set by the International Monetary Fund (IMF), Pakistan is also required to notify the electricity tariff schedule as per the determination by the regulatory by the end of September 2019.
There were several conditions set by IMF that are under process by Pakistan and for attaining this, Pakistan set several rules and regulations in the country in Budget 2019-20.