Govt withdraws subsidy on electricity for export sector

Author: Web Desk

In order to complete the prior actions suggested by the International Monetary Fund in order to reach a staff-level agreement with the lender, the government increased the electricity price for the export sector, including textiles on Wednesday.

According to reports, the government has withdrawn the competitive rates offered to the export sector, and the sector’s power rate has been raised as of today (March 1).

As a result, the government has withdrawn the notification to provide electricity at a subsidized rate of Rs19.99 to the export sector.

The federal cabinet gave approval to the withdrawal of the competitive rates for the export sector.

The decision was taken to reduce the circular debt in the power sector.

The federal cabinet gave its assent to the revised circular debt plan.

Pakistan is facing tough conditions for the restoration of the IMF bailout package. The global lender has changed interpretations of at least four prior actions ahead of reaching a staff-level agreement (SLA) on the direly needed economic bailout.

Sources reveal that the authorities are extremely annoyed at the latest situation. However, despite this disappointment, Pakistan anticipates the conclusion of the SLA next week and the materialization of financing support from friendly nations – some of which took more time than anticipated because of signals from the Fund.

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