Islamabad [Pakistan], September 1 : The International Monetary Fund (IMF) has requested Islamabad to provide a written plan after the government decided to seek clearance from the Washington-based lender about its proposal to ease the burden on furious citizens over a hike in electricity bills, The News International reported citing sources.
People across Pakistan have been protesting against the rise in electricity prices for the past few days.
The decision was made by the government, which is now led by caretaker Prime Minister Anwaar-ul-Haq Kakar, after it decided to contact the international lender and ask for permission before releasing relief measures to the people who are suffering from inflation.
The interim premier presided over a federal cabinet meeting on Tuesday to discuss possibilities, but no decisions were made at the end of the discussion, as reported by The News International.
The Power Division presented its ideas to the authorities, but it was decided that the lender should come on board first due to the tight loan conditions of the IMF.
Islamabad agreed to strict financial discipline during the program and had inked a USD 3 billion loan arrangement with the IMF in July.
The former government of the Pakistan Democratic Movement approved a significant increase in electricity costs as part of the bailout package, which is now reflected in the bills.
According to the sources, quoted by Finance Minister Shamshad Akhtar and IMF envoy, Esther Perez had a virtual meeting as per cabinet directions to explore relief measures.
They were given an update on the circumstances as protests across the nation continue unabatedly.
The sources, cited by The News International, noted that although the Pakistani team offered several suggestions for reducing electricity prices, IMF officials requested the relief plan in writing, which would be provided to them today.
Furthermore, they claimed that in July, representatives of the Federal Board of Revenue (FBR) spoke virtually with the IMF about tax collection.
“The two sides will hold another session in the next few days,” The News International reported.
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