In an attempt to provide relief to consumers who are struggling with the costs of increasing facilities, the federal government pays to reduce electricity prices by 6-8 rupees per two months to come.
This step comes as a high electricity tariff continues to nourish public anger, especially between medium and low -income families, while opposition parties criticize the government’s treatment of the energy sector.
The Federal Energy Secretary, Dr. Mohamed Fakhr Erfan, told the Senate Standing Committee on the authority that the government is also working to reduce taxes on electricity bills.
However, this requires approval from the International Monetary Fund (IMF), with talks in early March.
To process escalating circular debt, which is currently estimated at 2.3 trillion rupee, the government is in talks with banks to secure a loan of 1.24 trillion rupee at a fixed rate.
Officials have revealed that agreements have already been completed with six independent producers (IPPS), providing 700 billion rupees, including 300 billion rupees in interest payments.
Also, conversations with another 25 iPPS have been completed in the “take and paying” style.
The recent rates of the State Bank in Pakistan, from 22 % to 12 %, have created favorable conditions for borrowing. The authorities aim to benefit from this by completing the loan period before the International Monetary Fund mission arrived next month.
Analysts say successful re -negotiations with IPPS can significantly reduce customs tariffs, enhance industrial competitiveness, and restore public confidence in the economic management of the government.
