Islamabad: The International Monetary Fund (IMF) is reviewing Pakistan’s proposed electricity price reforms under the $7 billion Extended Fund Facility (EFF) program. The IMF emphasized that any tariff adjustments must not unfairly burden low- and middle-income households or trigger excessive inflation. Ongoing discussions with Pakistani authorities are assessing the macroeconomic and inflationary impact of the reforms. The government aims to rationalize tariffs, reduce cross-subsidies, and improve cost recovery in the power sector. However, experts warn that without targeted subsidies, higher electricity prices could increase inflationary pressure. The electricity pricing framework has become a key issue ahead of Pakistan’s upcoming IMF program review.
