IMF seeks power tariff details for FY25

Sources said the management control of the DISCOs would be handed over to the private sector by year end

ISLAMABAD:

The International Monetary Fund (IMF) sought details of the electricity tariff for the coming financial year 2024-25, as well as the specifics about the cross subsidy, which put a burden of Rs473 billion on the industrial sector, sources said on Wednesday.

The details had been sought as the competitive tariff for the industrial sector was expected to be implemented from the next financial year), according to the sources. They added that the government’s response to the IMF could be sent by Friday (tomorrow).

This year, the finance ministry had provided full financial support to keep the circular debt frozen. For that purpose, the financing of Rs976 billion was required. On Tuesday, Power Division secretary informed a Senate Committee that they had met the target of freezing circular debt at Rs2.310 trillion.

The sources said that the loss of Rs263 billion was estimated due to the low recovery by the Distribution Companies DISCOs. They added that the management control of the DISCOs would be handed over to the private sector by the end of this year on the IMF’s demand.