Pakistan has convinced the International Monetary Fund (IMF) to slash the electricity rate by two rupees per unit, sources said on Tuesday.
Pakistan and the IMF have commenced policy-level talks for the disbursement of $1 billion loan tranche under the ongoing loan package.
The officials held a lengthy session of talks with the IMF team to cut the electricity tariff by 1.5 to two rupees per unit, according to sources.
“Final decision to slash basic tariff of electricity will be held in the next month”. According to sources, the IMF has in principle approved cut in the basic tariff of electricity.
“Pakistan has to submit a comprehensive privatization plan of distribution companies (Discos) to slash the power tariff,” sources shared.
The IMF has been dissatisfied with the performance of Discos and expressed concern over losses of the power distribution companies.
The IMF team has pointed out below par performance of the distribution companies as the main hurdle in reforms in the energy sector, sources shared.
