Islamabad- The International Monetary Fund (IMF) has tied the approval of the next loan tranche with a four percent power tariff increase.
In order to secure the next loan tranche of over $550 million, Pakistan will now have to announce a four percent increase in power tariffs, effective from September 1.
The government believes that the Pakistan Tehreek-e-Insaaf (PTI) may use it for settling political scores and make it difficult for the government to implement the necessary decision.
Moreover, the timing of the ongoing sit-ins by PTI and PAT has made it difficult for the government to implement the marginal increase of less than 50 paisas per unit in power tariffs.
Discussions will be continued in the coming days via video conferencing, from Washington D.C, with the aim of securing a timely completion of the fourth review.