Tag: IMF

ISLAMABAD: The International Monetary Fund (IMF) has demanded a substantial levy on gas supply to industrial captive power plants (CPPs) as part of Pakistan’s commitments under the $7 billion Extended Fund Facility (EFF). The aim is to eliminate the cost advantage of in-house electricity generation over grid power. A structural benchmark under the EFF requires gas disconnections to CPPs by…

ISLAMABAD: The Ministry of Power reaffirmed on Sunday that the circular debt targets agreed upon with the International Monetary Fund (IMF) are well within limits, with the December 2024 goal firmly on track. In a statement, the Power Division clarified that its performance aligns with quarterly targets for circular debt management. “The agreed target with the IMF ensures circular debt…

ISLAMABAD: The Ministry of Power has issued an urgent appeal for the release of Rs400 billion in subsidies by December 2024 to meet the International Monetary Fund’s (IMF) conditions under the $7 billion Extended Fund Facility (EFF). Failure to comply risks escalating the circular debt beyond the agreed threshold, jeopardizing financial stability and IMF commitments. So far, only Rs82 billion…

ISLAMABAD: The government is navigating a critical challenge under the $7 billion IMF program, which mandates disconnecting Captive Power Plants (CPPs) from the gas supply by January 2025. This structural benchmark, intended to transition industries to grid electricity, has sparked concern among policymakers. In a high-level meeting chaired by Finance Minister Senator Muhammad Aurangzeb, four federal ministers, including those for…

ISLAMABAD: The government and the International Monetary Fund (IMF) are grappling with unresolved energy sector issues, raising concerns of potential defaults among major public-sector entities. These challenges are casting doubt on the stability of the $7 billion loan program signed just two months ago. The IMF, led by mission chief Nathan Porter, also expressed concern over missed provincial cash surplus…

ISLAMABAD: The federal government’s proposed ‘Winter Package 2024,’ aimed at boosting electricity consumption during winter, remains uncertain as conflicting reports emerge regarding International Monetary Fund (IMF) approval. The package seeks to lower electricity rates by Rs 7-8 per unit nationwide for five months, from December 2024 to April 2025, in an effort to increase domestic demand and reduce capacity charges.…

MOSCOW: Russia, the current chair of BRICS, has urged its partners to develop an alternative to the International Monetary Fund (IMF) as part of efforts to counter Western political influence. Russian Finance Minister Anton Siluanov, at a BRICS finance meeting ahead of the upcoming summit, argued that the global financial system is dominated by Western nations and does not serve…