Pakistan Submits Plan to IMF for Electricity Price Reduction

The Pakistani government has presented a comprehensive plan to the International Monetary Fund (IMF) to decrease electricity prices by Rs6 per unit. The plan involves joint funding of Rs2,800 billion from the federal and provincial governments to:

1. Shut down inefficient power plants
2. Settle outstanding contracts with independent power producers (IPPs)
3. Repay local loans for certain power plants
   

The funding breakdown includes:

• Federal government: Rs1,400 billion
• Provincial governments (through NFC Award):
  • Punjab: Rs699 billion
  • Sindh: Rs351 billion
  • Khyber Pakhtunkhwa: Rs231 billion
  • Balochistan: Rs119 billion
    

The plan aims to:

1. Reduce profits of government-owned power plants (Rs1.15/unit decrease)
2. Address Rs2,300 billion circular debt (Rs2.83/unit decrease)

The government awaits IMF approval to implement the plan, which promises significant relief to consumers by lowering electricity costs.

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