Punjab’s decision to give electricity subsidies of between Rs45 and Rs90 billion for two months has led to a number of strict conditions being placed on Pakistan by the International Monetary Fund (IMF), mostly pertaining to energy subsidies and provincial budgets.
An Express Tribune report claims that the IMF called this action “fiscally reckless” and that it must stop the short-term subsidies by September 30.
In addition, throughout the 37-month Extended Fund Facility (EEF) program, no province government may implement any additional subsidies, according to IMF regulations.
For clients consuming up to 500 units of electricity per month, this basically ends Punjab’s projected Rs. 700 billion solar panel distribution system.
