The IMF seeks Pakistan’s plan to reduce power theft, losses in the midst of rescue review

The International Monetary Fund has asked Pakistan to submit detailed proposals aimed at limiting electricity theft, reducing the loss of lines and charging charges, as talks between the two sides continue in the context of the second economic review of the current program.

The discussions are part of the efforts to ensure the liberalization of a billion dollars in the context of EXTENDED FUND (EFF) and an additional $ 220 million in the Ruage and Sustainability Unit (RSF).

Sources told Express Tribune that the International Monetary Fund (IMF) also called for clarity from the federal government on the lack of targets of provincial surpluses, which amounted to RS921 billions of target of 1,200 billion RS for the financial year. Punjab has published a surplus of RS348 billion, Sindh RS283 billion, KHYBER-PAKHTUNKHWA (KP) RS176 billion and Balochistan RS114 billion. The KP government is expected to inform the IMF separately between September 29 and 1 October.

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The development is coming as Pakistan informed the IMF on Friday that it is unlikely to respond to the RS3.1 trillion tax target for the current quarter, according to tax authorities.

At a separate meeting, officials of the Power Department informed the IMF mission visiting the energy sector reforms. The Fund reportedly expressed concerns about ineffectiveness, including high system losses and costly capacity payments made in insufficiently used power plants.

To address these issues, the federal government assured the IMF that it plans to eliminate circular debt before the six -year deadline. Authorities have claimed that the stock of circular debt has already been reduced to 397 billion Rs, from previous views of RS635 billions. They added that consumers would not face extra weight, as payments would continue through the existing increase in RS3.23 per unit.

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The Fund was also informed of the ongoing negotiations with independent electricity producers (IPPs) and the process of privatizing three profitable electricity distribution companies. The government has shared plans for the use of surplus electricity for industrial consumption and encryption mining, confirming its commitment to convey control of the entities of loss in the private sector.

The update covered further plans to restructure the 660 billion RS in old -fashioned debts and increased the 565 billion RS in new funding under the upcoming loan package. Employees expressed optimism that the measures would help stabilize the energy sector and restore investor confidence.