ISLAMABAD: The International Monetary Fund (IMF) has given the green light to provide temporary relief to electricity consumers in Pakistan, in response to widespread protests triggered by steep tariff increases. The finance ministry disclosed this development on Thursday, stating that the caretaker Prime Minister Anwaarul Haq Kakar would secure cabinet approval through a summary circulated for the plan.
This relief measure, however, comes with a caveat—it applies exclusively to consumers using up to 200 units of electricity. Households falling within the 201 to 400 unit category will not benefit from this initiative endorsed by the world's leading lender.
According to documents from the finance ministry, those consuming up to 200 units are exempted from late surcharges if they have not paid their August bills on time. Additionally, they have the option to settle the outstanding amount in installments.
Approximately four million consumers will benefit from this decision, but had it included those consuming up to 400 units, the beneficiary count could have surged to 32 million.
In response to surging losses in the national exchequer and the skyrocketing prices of essential commodities, the government announced a nationwide crackdown against smugglers and power thieves. Members of the caretaker cabinet, Muhammad Ali and Murtaza Solangi, declared a planned offensive against electricity theft, citing the annual loss due to such theft and unpaid bills at Rs589 billion. They emphasized that power tariff reduction would remain elusive until power theft ceased.
Moreover, the Ministry of Finance cautioned that the substantial increase in fuel prices and power tariffs in August would lead to higher inflation in the coming months. This indirect admission of policy failures attributed to IMF guidance has adversely affected the lives of a significant majority in Pakistan.
The IMF's conditions regarding fuel and energy price hikes, along with elevated interest rates, have exacerbated inflation and hindered economic growth. Notably, Pakistan has experienced a marked decline in electricity consumption, akin to petrol and diesel, highlighting the shortcomings in the policies advocated by the world's leading lender."
