In a significant development, the International Monetary Fund (IMF) has approved a relief plan worth Rs 15 billion aimed at alleviating the financial burden on electricity consumers in Pakistan.
According to sources familiar with the matter, the Federal Board of Revenue (FBR) played a pivotal role in securing this relief package from the IMF. Impressively, the FBR exceeded expectations by collecting an additional Rs 20 billion in taxes.
The IMF’s decision to grant this relief underscores the commendable performance of the FBR and the dedication of key figures in the caretaker government, including Caretaker Prime Minister Anwarul Haq Kakar, Caretaker Finance Minister Dr. Shamshad Akhtar, and Caretaker Energy Minister Muhammad Ali.
This relief package is expected to provide significant benefits to consumers with electricity consumption of up to 200 units. Consumers falling within this category can anticipate relief ranging from Rs 3 to Rs 4 per unit on their electricity bills. Additionally, provisions will be made for delayed payments to ensure that consumers do not face penalties.
However, it’s important to note that consumers exceeding 400 units of electricity consumption will not be eligible for this relief, as per the IMF’s condition.
The final approval for deferred payments and the relief package will be granted by the Federal Cabinet.
It’s worth mentioning that the relief in electricity bills will apply exclusively to bills for the month of August. An estimated 64 percent of those using up to 200 units of electricity across the country are expected to benefit from this relief, and late payments in this category will not incur the usual 10 percent penalty.
Previously, the caretaker government communicated with the IMF and proposed a new relief plan for electricity bills. They intend to utilize over Rs 15 billion allocated for independent power producers (IPPs) to provide relief on inflated electricity bills. This allocation will take place after the recovery of installments of bills and will be discussed with the IMF, ensuring it aligns with budget parameters.
