- The International Monetary Fund ordered Pakistan to fix the entire power sector so as to provide relief to consumers in electricity bills.
- The IMF has instructed the country to raise gas prices for Captive Power Producers (CPPs) in line with the increases applied to other consumers, taking effect from July 2023.
The International Monetary Fund (IMF) has directed Pakistan to tender a written agreement with respect to reducing inflated electricity bills. According to reports, the International Monetary Fund has laid out five stringent conditions for the Pakistan government.
One of these conditions pertains to terminating the privileges and benefits granted to Captive Power Producers (CPPs) established by industrial units. The International Monetary Fund has instructed the government to promptly raise gas prices for CPPs in alignment with the increases applied to other consumers, with this adjustment taking effect from July 2023.
In addition, the International Monetary Fund ordered the Pakistan government to provide a comprehensive plan on how it plans to end subsidies for Captive Power Producers. According to the IMF, these prices would be on par with other sectors. The International Monetary Fund has also told the government to fix the entire power sector so it can provide relief to consumers in electricity bills.