Daily Times

The caretaker government has reportedly developed a plan to help the power consumers amid nationwide protests over skyrocketing electricity bills.

According to sources, the interim government has decided to give consumers who used up to 300 units in October’s electricity bills a relief of up to Rs3,000.

Similarly, the sources claimed that electricity users will benefit from a reduction of Rs 13,000 if their monthly bills range from Rs 60,000 to Rs 70,000.

According to insiders, the International Monetary Fund (IMF) and the caretaker administration are currently in talks about offering relief to power consumers.

The Washington-based global lender has requested additional information from the Power Division in order to make a decision regarding the various proposals made to the Fund in order to obtain relief from the increased bills for August and September.

“We have shared the required data with the Fund people hoping that IMF may today (Monday) come up with its response with a yes or no to the assertions of the Finance and Power Divisions, seeking permission for relief to inflation-stricken people in electricity bills,” some top sources engaged with the IMF told The News.

“At the moment, authorities of both Power and Finance divisions are in hectic talks with the Fund people on the data related to suggested measures for solace in power tariffs and their possible impact on circular debt, cash flow situation, and further delays to IPPs, ultimately making the power sector more unsustainable.”

The caretaker government in Islamabad, led by Anwaar-ul-Haq Kakar, has been attempting to persuade the international lender to agree to provide immediate relief for electricity consumers in the cash-strapped nation, where people are already suffering from skyrocketing inflation.

This comes in response to ongoing protests by citizens and traders who have taken to the streets against the exorbitant hikes in power bills and the addition of taxes.

On August 31, the interim premier expressed confidence that the Fund would likely approve the government’s proposal to provide relief to the public within 48 hours, but it continued to wait for a response after the deadline had passed.

The IMF was previously briefed on the aforementioned proposal, which calls for reducing the tariff by up to 30% for August and September. The impact of the reduced tariff would be gradually passed on to consumers over the course of the six-month winter season, from October 2023 to March 2024.