- Loan authorities want energy performance up by 5pc, power subsidy near zero, line losses curtailed, outstanding recoveries made
International Monetary Fund (IMF) and World Bank (WB) have set 12 pre-conditions for introducing reforms in the energy sector in order to release next tranche of loan to Pakistan.
Per conditions, the Finance Ministry will bring down the subsidy on electricity from 1.8 per cent of GDP to 0.3 per cent of GDP. The line losses will have to be curtailed from 21.9 per cent to 17.9 per cent. The government and power distribution companies will have to increase the recovery level of outstanding dues from the consumers from 86 to 94 per cent.
As per reforms targets set by IMF and WB, Ministry of Water and Power and Ministry of Petroleum and Natural Resources will bolster up performance level of energy to 5 per cent as the present level stands at zero.
The conditions said that government should minimise the circular debt and improve the performance of IPPs. Further, conditions demand review and monitoring system in connection with power distribution and recovery of bills be improved and report to this effect be issued on monthly basis.
The IMF and WB have given a month to Finance Ministry during the talks held in the beginning of this month to implement the stipulated target.
Finance M inister Ishaq Dar will hold final meetings with the IMF and WB between June 20 and 25 for release of next tranche of loan.