The International Monetary Fund (IMF) has demanded that the provision of Rs 14 per unit relief in electricity bills for two months, i.e. Rs 45 to 90 billion, should be ended by September 30 for the new loan program. 3. Impose new conditions.
It should be noted that on August 16, the leader of the Muslim League-N, Nawaz Sharif, had said that the government of Punjab would reduce the cost of 14 rupees per unit of electricity for Punjab. Will be.
According to the Express Tribune report, the international lender has imposed at least three conditions on the Punjab government. According to sources, the IMF also asked for the end of this temporary subsidy by September 30 and clarified that no provincial government will provide any new such subsidy during the 37-month Extended Fund Facility (EEF) programme.
The new conditions could jeopardize Punjab’s Rs 700 billion plan to provide solar panels to 500 monthly users. According to a condition recently introduced by the IMF, “provinces agree that they will not introduce any subsidy for electricity or gas.”
Repetition of Maryam Nawaz and Mustafa Kamal on relief in electricity bills in Punjab only
According to the conditions, the provinces have agreed not to give any subsidy on electricity and gas. This refutes claims that provinces can subsidize electricity and also questions Prime Minister Shehbaz Sharif’s statement in which he encouraged the other three provinces to follow Punjab’s lead.
According to the sources, the second new condition of the IMF obligates all the provincial governments that they will not introduce any policy or measure that is against or undermines the commitments made under the 7 billion dollar program. This provision will cut the wings of the four provincial governments regarding powers in financial matters.
Provincial governments have pledged with the IMF to sign a National Fiscal Agreement by the end of September so that they can shoulder some of the costs borne by the federal government. Provincial governments have also promised to improve agricultural income tax, property tax and sales tax on services.
Maryam Nawaz will fulfill her dream of roof for low income people in Punjab
Due to the new condition of not undermining these promises, provincial governments can no longer take unilateral actions. According to the third new condition of the IMF, the provinces will consult the Ministry of Finance before taking any action that may affect or reduce the structural standards and key measures agreed with the IMF.
#IMF #stops #subsidy #electricity #bills #Pakistan
2024-09-07 17:55:14
Subsidies
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IMF Demands End to Electricity Subsidy and Imposes New Conditions
The International Monetary Fund (IMF) has demanded that the provision of Rs 14 per unit relief in electricity bills for two months, worth Rs 45 to 90 billion, be ended by September 30 as a condition for the new loan program. This move is part of the IMF’s efforts to ensure fiscal discipline and promote sustainable energy policies.
The IMF’s demand comes after the government of Punjab, led by the Muslim League-N, announced plans to reduce the cost of electricity by Rs 14 per unit for the province. However, the IMF has made it clear that such subsidies will not be tolerated during the 37-month Extended Fund Facility (EEF) program.
The IMF has imposed at least three conditions on the Punjab government, including the end of the temporary subsidy by September 30 and a commitment from provinces not to introduce any new subsidies for electricity or gas during the loan program. This move could jeopardize Punjab’s Rs 700 billion plan to provide solar panels to 500,000 monthly users.
The IMF’s conditions have raised questions about the ability of provincial governments to provide subsidies for electricity and gas. Prime Minister Shehbaz Sharif had encouraged other provinces to follow Punjab’s lead in providing subsidies, but the IMF’s conditions have put a damper on such plans.
In addition to ending the electricity subsidy, the IMF has also imposed a condition that provincial governments will not introduce any policy or measure that undermines the commitments made under the 7 billion dollar program. This provision will limit the powers of provincial governments in financial matters and ensure that they do not introduce measures that contradict the IMF’s conditions.
Provincial governments have pledged to sign a National Fiscal Agreement by the end of September, which will require them to shoulder some of the costs borne by the federal government. This move is seen as a key step towards ensuring fiscal discipline and promoting sustainable economic growth.
The IMF’s demand for an end to the electricity subsidy is not surprising, given its push for sustainable energy policies. The IMF has estimated that a direct tax of $0.047 per kilowatt hour could drive the crypto mining industry to curb its emissions in line with global targets [[2]]. Similarly, the IMF has noted that meeting Europe’s emission reduction targets could enhance energy security metrics by 8 percent by 2030 [[3]].
the IMF’s demand for an end to the electricity subsidy and its imposition of new conditions on provincial governments are part of its efforts to promote fiscal discipline and sustainable energy policies. While this move may be unpopular with some, it is essential for ensuring the long-term economic stability of the country.
References:
United States fossil fuel subsidies
IMF Demands End to Electricity Subsidy and Imposes New Conditions
The International Monetary Fund (IMF) has demanded that the provision of Rs 14 per unit relief in electricity bills for two months, worth Rs 45 to 90 billion, be ended by September 30 as a condition for the new loan program. This move is part of the IMF’s efforts to ensure fiscal discipline and promote sustainable energy policies.
The IMF’s demand comes after the government of Punjab, led by the Muslim League-N, announced plans to reduce the cost of electricity by Rs 14 per unit for the province. However, the IMF has made it clear that such subsidies will not be tolerated during the 37-month Extended Fund Facility (EEF) program.
The IMF has imposed at least three conditions on the Punjab government, including the end of the temporary subsidy by September 30 and a commitment from provinces not to introduce any new subsidies for electricity or gas during the loan program. This move could jeopardize Punjab’s Rs 700 billion plan to provide solar panels to 500,000 monthly users.
The IMF’s conditions have raised questions about the ability of provincial governments to provide subsidies for electricity and gas. Prime Minister Shehbaz Sharif had encouraged other provinces to follow Punjab’s lead in providing subsidies, but the IMF’s conditions have put a damper on such plans.
In addition to ending the electricity subsidy, the IMF has also imposed a condition that provincial governments will not introduce any policy or measure that undermines the commitments made under the 7 billion dollar program. This provision will limit the powers of provincial governments in financial matters and ensure that they do not introduce measures that contradict the IMF’s conditions.
Provincial governments have pledged to sign a National Fiscal Agreement by the end of September, which will require them to shoulder some of the costs borne by the federal government. This move is seen as a key step towards ensuring fiscal discipline and promoting sustainable economic growth.
The IMF’s