ISLAMABAD – The International Monetary Fund (IMF) has agreed to the federal government’s proposal to lower electricity prices, with a potential reduction of Rs1 to Rs2 per unit expected in April. NEPRA and the Ministry of Energy have been authorized to implement the changes.

However, the IMF expressed concerns over the delayed privatization of DISCOs, emphasizing that improving their performance is crucial for the power sector. The global lender also rejected proposed amendments to the NEPRA Act.

Discussions on the circular debt issue are ongoing, with Pakistan planning to borrow Rs1,250 billion from banks to address the crisis. The plan includes waiving late payment surcharges of up to Rs600 billion and imposing a surcharge of Rs2.8 per unit on consumers to help manage debt.

Additionally, negotiations on tax policies, including agricultural and property taxes, are underway. The government aims to resolve a Rs605 billion revenue shortfall without introducing a mini-budget.

Prime Minister Shehbaz Sharif has assured full cooperation in resolving tax-related cases, with Chief Justice Yahya Afridi approving expedited hearings to address pending disputes. A new IMF delegation is expected after Eid for further governance-related discussions.