IMF Deal Finalized: Will Electricity Prices Drop?
A staff-level agreement has been reached between Pakistan and the IMF, under which the country will receive an installment of $1 billion, but hopes for a significant reduction in electricity prices seem to be fading.
Prime Minister Shehbaz Sharif had assured the business community that the good news of a reduction in electricity prices of Rs 8 to 10 per unit would be announced on March 23, but according to experts, no effect is seen yet.
Economist Ahmed Chinoy says that the problem of IPPs remains the same, there has been no reduction in capacity charges, and there has been no difference in electricity bills.
On the other hand, according to economist Shahbaz Rana, the IMF has only talked about a reduction in electricity rates of Rs 1 per unit, nothing more.
He added that if the Prime Minister wants to give a relief package, the IMF is not yet ready to cooperate on it.
Pakistan will receive approval for a $1 billion loan from the IMF board. An agreement has also been reached on $1.3 billion in funding for climate change.
Pakistan has shown good performance in economic reforms, and the number of taxpayers has increased.
Although the government is calling the IMF agreement a step towards economic stability, the possibility of reducing electricity prices for the public currently looks low.
Industrialists say that if the government does not make a decision soon, the economy may suffer further damage.
