IMF Pakistan electricity tariff reforms must protect middle- and low-income households from additional financial burden, the global lender said, as Islamabad continues negotiations under its $7 billion Extended Fund Facility (EFF) programme.
The International Monetary Fund said any IMF Pakistan electricity tariff adjustments should be carefully designed so vulnerable consumers are shielded from sharp price shocks. The lender emphasized that Pakistan’s ongoing power sector reforms are heading in the right direction, including privatization of distribution and generation companies and restructuring of the transmission network.
According to the IMF, reforms under the EFF programme remain on track and circular debt levels in the power sector are within agreed limits. The institution is reviewing whether proposed changes in the IMF Pakistan electricity tariff framework align with programme commitments.
It is also assessing the likely impact of tariff revisions on inflation, economic growth and financial stability. Discussions between Pakistani authorities and IMF officials are continuing, with further negotiations expected during the next EFF review meeting scheduled for late March.
