The International Monetary Fund (IMF) has approved a Rs. 15 billion relief plan targeted at providing financial assistance to Pakistani energy consumers, according to a local news outlet on Thursday.
According to sources close to the case, the Federal Board of Revenue (FBR) played a critical role in achieving this IMF relief, and the FBR has exceeded expectations by collecting an astonishing Rs. 20 billion in excess taxes.
Moreover, the IMF’s decision to grant Rs. 15 billion in relief, aimed at easing the financial burden on energy consumers, demonstrates the FBR’s remarkable performance.
Additionally, it highlights the unwavering efforts of important players in the caretaker government, such as Caretaker Prime Minister Anwarul Haq Kakar, Caretaker Finance Minister Dr. Shamshad Akhtar, and Caretaker Energy Minister Muhammad Ali.
Conditions of Rs. 15 Billion Relief in Electricity Bill
The relief plan is projected to bring significant benefits to consumers who consume up to 200 units of power.
According to sources, consumers in this group should expect to save between Rs 3 and Rs 4 per unit on their electricity costs.
Furthermore, provisions for late payments will be included, guaranteeing that these customers do not face penalties for late payments.
However, the IMF stipulated that consumers who spend more than 400 units of energy will not be eligible for this relief.
According to sources, the Federal Cabinet will approve final approval for deferred payments and the rescue package.
Important Note
However, it is important to note that the relief in electricity costs will only apply to invoices for the month of August.
According to sources, at least 64% of individuals in the country who use up to 200 units of energy will profit from this alleviation.
Furthermore, late payments by consumers in this group will not incur the regular 10% penalty.
Previously, the caretaker government proposed a fresh relief package for electricity bills in its correspondence with the International Monetary Fund (IMF).
According to sources, the government has planned to use around Rs 15 billion allotted for independent power producers (IPPs) to provide relief from high electricity bills.
Proposal To IMF
“The finance ministry has dispatched fresh relief proposal for electricity bills to the IMF,” according to sources.
“Over Rs. 15 billion were additionally allocated for payment to the IPPs in current fiscal year’s budget,” sources said. “This amount can be adjusted to provide relief on bills,” sources added.
“This over Rs. 15 billion will be allocated for the IPPs after recovery of installments of bills,” sources said.
“The finance ministry officials will hold talks with the IMF on the new plan, in which the lender will be assured of not providing relief out of the budget parameters,” sources added.
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