The Ministry of Energy and the International Monetary Fund (IMF) mission are currently in negotiations to address the global lender’s concerns regarding the government’s solar policy.
According to sources, the government is making efforts to resolve the IMF’s reservations related to the policy.
Sources revealed that officials from the Power Division and Petroleum Division will separately brief the IMF on various issues. The Secretary of the Power Division, Petroleum Division, and Finance Secretary will be present during the briefing, Express News reported.
The Power Division will focus on the performance of Discos (distribution companies), circular debt, and the privatisation process.
The briefing will also cover strategies to reduce line losses, improve electricity bill collections, and curb electricity theft, Express News reported.
Progress on the privatisation of three Discos and the identification of assets will also be highlighted. Efforts will be made to address IMF concerns regarding the government’s solar policy.
Additionally, sources confirmed that the government will discuss plans to reduce electricity tariffs by Rs 8 to 10 per unit, gaining the confidence of officials at the Federal Board of Revenue (FBR).
During the Petroleum Division meeting, de-regulation in the petroleum and gas sectors will be discussed, alongside plans to tackle the 3 trillion rupee circular debt in the gas sector.
The government also intends to provide a briefing on a plan to address circular debt by setting an average tariff for both local and imported gas. Plans to further divide government-owned gas companies and involve the private sector in gas buying and selling will also be considered.
