Pakistan Releases Rs140 Billion to Power Plants in Compliance with IMF Terms
In compliance with the conditions set by the International Monetary Fund (IMF), Pakistan has disbursed Rs140 billion to government-operated power plants to address the circular debt plaguing the energy sector.
According to the finance ministry document, Karachi Electric has received Rs57 billion to tackle circular debt issues, with Pakistan aiming to reduce the energy sector's circular debt by Rs400 billion during FY2023-24 as per IMF stipulations.
In the ongoing IMF Stand-By Arrangement (SBA) program, Pakistan is making efforts to fulfill the requirements for the next staff-level agreement.
The government has assured the IMF of maintaining the power sector's circular debt at Rs2.31 trillion, a commitment reiterated before the Senate Standing Committee for Power.
Additionally, it is anticipated that Rs260 billion will be allocated to the power sector and Rs65 billion to gas companies in the fiscal year 2023-24. Pakistan remains focused on meeting the IMF conditions to address challenges in its energy sector.
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