Consumers using up to 300 units to get Rs3,000 relief in power bills

ISLAMABAD: In the midst of nationwide protests sparked by soaring electricity bills, the interim government in Pakistan has taken steps to provide relief to beleaguered power consumers.

Sources have revealed that the caretaker government intends to offer relief of Rs. 3,000 to consumers whose electricity consumption does not exceed 300 units on their October bills. Additionally, those grappling with hefty electricity bills ranging from Rs. 60,000 to Rs. 70,000 will benefit from a substantial reduction of Rs. 13,000.

Simultaneously, negotiations are ongoing between the International Monetary Fund (IMF) and the caretaker government regarding this matter of providing respite to power consumers.

Furthermore, The News reported that the IMF, headquartered in Washington, has requested additional data from the Power Division to evaluate various suggestions presented to the Fund seeking relief from the elevated bills incurred in August and September.

Sources closely connected to the IMF discussions stated, "We have provided the necessary data to the Fund in the hope that the IMF may respond today (Monday) with a yes or no to the proposals from the Finance and Power Divisions, which seek permission to provide relief to people affected by inflation in electricity bills."

"At present, representatives from both the Power and Finance divisions are engaged in intense discussions with IMF officials regarding the data related to suggested measures for reducing power tariffs and their potential impact on the circular debt, cash flow situation, and potential delays to Independent Power Producers (IPPs), which could ultimately make the power sector even more unsustainable."

With citizens and traders persistently taking to the streets to protest against the exorbitant electricity bill hikes and additional taxes, the caretaker Prime Minister Anwaar-ul-Haq Kakar's administration in Islamabad has been actively pursuing the IMF's approval to swiftly provide relief to electricity consumers in the financially strained country, where people are already grappling with skyrocketing inflation.

On August 31, the interim premier had expressed optimism that the Fund would approve the government's relief-related proposal aimed at alleviating public hardships within 48 hours. However, after the deadline passed, there has been no word from the IMF.

The IMF had previously been briefed on the proposal, which involves reducing a portion of the tariff—up to 30% for August and September—with the impact of the reduced tariff being gradually passed on to consumers over six months during the winter season, from October 2023 to March 2024.

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