IMF 'okays' relief plan for consumers using up to 200 units

ISLAMABAD: The International Monetary Fund (IMF) has greenlit the relief proposal for consumers using up to 200 units, allowing the authorities to collect electricity bills in installments, sources told Geo News Thursday.

However, the interim government's plan to provide relief to those consuming up to 400 units of electricity per month was rejected by the Fund, the sources added.

"The final approval to collect bills in installments will be taken from the federal cabinet," the sources said adding that about 4 million electricity consumers are likely to get temporary relief from this initiative.

If, however, relief had been granted to those with up to 400 units of power consumption, 32 million consumers could have benefited, the sources mentioned.

They added that the Washington-based lender had emphasised the need to crack down on electricity and gas thieves and improve recovery.

Moreover, the sources said that the Fund had also demanded an increase of 45 to 50% in gas tariff from July 1. However, the hike in gas tariff is subject to the approval of the federal cabinet.

Following continuous protests by citizens and traders, who have taken to the streets against the exorbitant hikes in power bills and addition of taxes, the caretaker Prime Minister Anwaar-ul-Haq Kakar-led setup in Islamabad has been trying to woo the global lender to agree to provide immediate relief for electricity consumers in the cash-strapped country, where people are already battered by skyrocketing inflation.

It is important to note that the South Asian nation is under an IMF programme and any relief or subsidy is subject to its approval.

The two sides had been engaged in intense talks to find out solutions to the inflated electricity bills amid countrywide protests.