Islamabad (Pakistan News Online): After the International Monetary Fund (IMF) rejected the government’s plan to reduce electricity rates by cutting taxes, a new strategy has been developed. Under this plan, the base tariff will be reduced by 8 to 10 rupees per unit, and the circular debt burden will be eliminated.
According to details, the government aims to utilize financial space created by a reduction of Rs. 1.3 trillion in debt repayments to address ongoing financial losses in the power sector.
A senior government official confirmed to The News that a major portion of this available financial space—approximately Rs. 1 trillion—will be allocated to clearing circular debt.
The official further stated that the IMF review mission is scheduled to visit Islamabad on March 4, 2025, to hold negotiations for the first review of the $7 billion Extended Fund Facility (EFF).