The International Monetary Fund (IMF) has enabled the Pakistani government to reduce RS1 electricity prices per kilowatt hour for all consumers.
The relief will be funded by the revenues collected via a direct debit imposed on electrical power plants using natural gas, the IMF said in a press release.
This decision is part of a broader rescue set on which the government works for electricity users.
According to official sources, the reduction could reduce the financial burden of consumers until Rs 100 billion. A cleaning consuming 500 electricity units would see a monthly economy of RS500 as part of the new plan.
The relief will be funded by the income generated by a deduction imposed on the gas consumed by power plants in captivity. The IMF said that the decision was one of the current reforms in the energy sector.
Development comes a few days after Pakistan and the IMF have entered into a staff level, unlocking access to an additional $ 1 billion under prolonged funds (EFF).
According to the IMF, inflation in Pakistan has reached its lowest point since 2015, and the country’s economic indicators show signs of additional improvement.
The IMF board of directors will approve the second tranche of the $ 1 billion and the new RSF installation of $ 1.3 billion at the end of April or at the beginning of May, according to the Pakistani authorities.
However, the fund will only publish $ 1 billion, while the $ 1.3 billion will be delivered over a period of 28 months and subject to the implementation of 13 conditions, including carbon levy.
