According to Geo News, the International Monetary Fund has made it more difficult for Pakistan to manage its economy by rejecting any suggestion for tariff adjustments or the provision of new subsidies.
Pakistan has asked that forthcoming quarterly tariff adjustments (QTAs) and Fuel Price Adjustments (FPAs) of (PKR) 7.50 per unit be stumbled over the next four to six months in response to the IMF’s serious objections to the government’s proposal to provide relief to the poor against exorbitant power bills, Geo News reported citing The News International report.
“However, Pakistan has requested the IMF for staggering of QTA and FPA over a period of four to six months so it may also require some additional cost on which both sides will have to agree upon,” top official verified to The News.
The sources claim that despite the QTA’s directive to hike rates by (PKR) 5 per unit in the preceding month and FPAs by (PKR) 2.72 per unit, the power sector’s problems have remained. A rate rise of over (PKR) 7 per unit is anticipated all told. According to Geo News, which cited The News, the QTAs will be determined using losses from the April to June period as a result of reduced unit consumption, cost-escalation of interest payments, and currency rate changes.
According to ARY News, the National Electric Power Regulatory Authority (NEPRA) granted the federal government permission to increase the base power cost by PKR 4.96/unit on July 14.
Additionally, the government and SBP’s options are limited by the fund plan, and an increase of 10–12% is expected as a result of interest rates.
