The IMF will approve the government's plans for revolving credit and electricity tariffs by Friday

IMF has also sought power tariff data from Power Information Technology Company (PITC) / File Photo

ISLAMABAD Leading government officials are optimistic that by Thursday or Friday of next week, the International Monetary Fund (IMF) would approve the measures to lower the revolving debt and lower the cost of power.


There will be a positive response from both sides, however, the top officials of the IMF in Washington have raised questions on the caretaker government's strategy regarding the power tariff. Not given.


Following receipt of statistical data, the IMF is anticipated to provide approval by Friday. IMF has also sought power tariff data from Power Information Technology Company (PITC).


According to the sources, there was no negative trend on the part of the IMF in the discussion on the above mentioned two projects. Concerned officials in the caretaker government answered all the questions asked by the IMF on Tuesday and also provided some additional data for decisions.


Under the plan to popularize electricity rates, the subsidy of 222 billion rupees for consumers will be withdrawn and the power tariff for industrial consumers will be reduced from 8.85 cents to 11.75 cents per unit. For unsecured power users who use less than 400 units of electricity each month, the fixed charge component will increase.


According to officials, Pakistan's economy cannot grow without more exports, so the electricity tariff needs to be rationalized because goods from Bangladesh, India, and Vietnam are being sold on foreign markets at a price of 14 cents per unit of electricity. Competition can be done while the fixed four components will be reduced from Rs 50 to Rs 450 per month after withdrawal of compensation to domestic consumers.