Govt Recklessly Planning to Cut Power Tariff for Industry in Next Budget Amid IMF Talks

The federal government is drawing up a Rs. 100 billion relief package for the industrial sector in the upcoming fiscal year budget, sources from the Ministry of Industries and Production told ProPakistani. Despite repeated demands of the International Monetary Fund (IMF) to make policy for reducing circular debt and expediting the recovery of electricity costs from all categories of consumers, the government plans to cut power tariffs for industries. This move is particularly aimed at supporting export-oriented industries and helping them enhance the global competitiveness of Pakistan-made products. Sources said higher authorities are trying very hard to devise such a relief package, as the industrial sector currently has to pay higher tariffs to help the government give subsidies to domestic consumers. Sources said the federal government has shared a proposal for rationalizing power tariffs with the IMF as both sides negotiate for a new loan program. If approved under budgetary provisions for the new fiscal year, the package will unlock benefits worth Rs. 100 billion for the export-oriented industries, sources added.