Daily Times

The International Monetary Fund (IMF) has allowed the Pakistan government to reduce electricity tariffs by Rs1 per kilowatt-hour for all consumers.

The relief will be financed through revenue collected via a levy imposed on captive power plants using natural gas, the IMF said in a statement.

The move is part of a broader relief package the government is working on for electricity users.

According to official sources, the reduction could lessen the financial burden on consumers by up to Rs100 billion. A household consuming 500 units of electricity would see a monthly saving of Rs500 under the new plan.

The relief will be funded through revenue generated from a levy imposed on gas consumed by captive power plants. The IMF stated that the decision is part of ongoing reforms in the energy sector.

The development comes days after Pakistan and the IMF reached a staff-level agreement, unlocking access to an additional $1 billion under the Extended Fund Facility (EFF).

According to the IMF, inflation in Pakistan has reached its lowest point since 2015, and the country’s economic indicators show signs of further improvement.

The IMF’s executive board will approve the EFF’s second tranche of $1 billion and the $1.3 billion RSF new facility either by the end of April or early May, according to Pakistani authorities.

However, the fund will release only $1 billion while the $1.3 billion will be given over a period of 28 months and subject to implementing about 13 conditions, including carbon levy.

Separately, Prime Minister Shehbaz Sharif stated that nations do not progress through International Monetary Fund (IMF) programs, emphasising that Pakistan has already achieved the stability it needs.

Speaking at the launch of the Prime Minister Digital Youth Hub, he clarified that the $1 billion loan from the IMF is not earned income but borrowed funds.

The prime minister said the public is aware that a staff-level agreement has been reached with the IMF, but it is a loan of one million dollars – not something Pakistan has earned on its own.

He stressed that the younger generation’s hard work and skills must transform a life of debt into one of dignity. “I will go to the last extent to free you from this debt,” he said. “We need to economically empower our farmers, industrialists, and youth.”

PM Sharif said young people in Pakistan must be made capable of earning a respectable livelihood. “We will cut other expenses and allocate more funds for youth training,” he added, promising to serve the nation as its humble servant.

He stated that investing in the youth would lead Pakistan toward progress. “Today is a day of unique happiness.”

Reflecting on his tenure as Chief Minister of Punjab, he said education, health, and youth development had been top priorities. “If young people are trained in IT, AI, and vocational skills, they will become the country’s greatest asset,” he said, recalling the free distribution of 400,000 laptops to deserving students purely on merit.

“In today’s world, advanced technology is a necessity,” he added.

The prime minister also announced that Rs34 billion had flowed into the national treasury over the past three weeks. This amount had previously been stuck due to stay orders obtained by banks through the courts.

Chairman Prime Minister Youth Programme Rana Mashood Ahmed Khan on the occasion said that the government was opening up new opportunities to empower youth of the country.

He said through PM Digital Hub, the youth would take benefit in various sectors including sports, tourism, sports, IT, green economy and others.

United Nations International Children Emergency Fund (UNICEF) Officer In-charge Sharmeela Rasool said this was a platform of opportunity and hope. She said this programme was aimed at making the youth stronger and a productive people of the country.

UN Resident Coordinator Muhammad Yahya said the Digital Youth Hub was prepared to make youth capable of exploring their capabilities. This is the start of a journey of development and prosperity for Pakistan, he added.