IMF Requests Written Relief Plan for Electricity Bills as Countrywide Protests Persist In Pakistan

(CTN News) – According to sources, the International Monetary Fund (IMF) has requested Pakistan to provide a written plan for offering relief in electricity bills amidst ongoing nationwide protests.

This request follows a decision by the interim government to gain approval from the IMF prior to announcing any consumer relief measures.

A federal cabinet meeting was convened on Tuesday, led by interim Prime Minister Anwaarul Haq Kakar, to explore potential options for relief; however, no measures were officially declared.

The Power Division had presented its suggestions to relevant authorities, but due to the stringent conditions of the IMF loan agreement, it was determined that involving the lender was necessary.

Recent Developments in Pakistan’s IMF Loan Agreement and Relief Measures for Electricity Bills

In July, Islamabad entered a loan agreement of $3 billion with the IMF, committing to adhere to rigorous financial regulations during the program.

As part of the bailout arrangement, the previous administration under the Pakistan Democratic Movement sanctioned a significant rise in electricity tariffs, which are currently reflected in consumers’ bills.

As directed by the cabinet, Finance Minister Shamshad Akhtar held a virtual discussion with IMF representative Esther Perez to deliberate on relief measures. The meeting encompassed an overview of the ongoing protest situation prevailing across the nation.

The Pakistani delegation put forth multiple propositions aimed at alleviating electricity bills, yet the IMF officials requested a written outline of the relief plan.

This document is expected to be shared with them today, as reported by the sources. Additionally, it was revealed that the Federal Board of Revenue (FBR) officials engaged in virtual discussions with the IMF regarding tax collection in July.

The sources indicated that both parties are slated to engage in another session within the coming days.

Nationwide Protests in Pakistan Demand Relief from Soaring Electricity Bills

According to a report by ARY News on Monday, individuals all across Pakistan are engaging in protests against the escalated electricity bills, exerting pressure on the government to provide relief.

The demonstrators are insisting that the government discontinue the practice of providing free electricity to prominent figures and instead alleviate their financial burden, as the bills they have received surpass their salaries.

Protest rallies were organized in various areas of Karachi, where people, accompanied by their children, expressed their dissatisfaction with the government’s actions through banners and placards. They voiced their grievances over the deteriorating quality of their lives.

In locations such as Ayesha Manzil, Korangi, Five Star Chowrangi, Yaseenabad, and Labour Square, citizens took part in protest gatherings. Some individuals, visibly angered, resorted to setting their electricity bills on fire as a symbol of protest.

The Pakistan People’s Party (PPP) and the Jamaat-e-Islami (JI) have both declared their intentions to hold protest demonstrations against the inflated electricity bills.