IMF demands end of tubewell subsidy, suggests solarization

ISLAMABAD: The International Monetary Fund (IMF) has demanded cancellation of budget subsidy for tubewell consumers, citing sources ARY News reported on Tuesday.

An IMF review mission holding talks with Pakistan to review the country’s economic performance during the first three months of the current fiscal year, from July to September.

Sources said that the IMF team during the review of the figures of the electricity subsidy, has suggested solarization scheme for tubewells.

“Around Rs. 90 billion will be spent on the solarization scheme for tubewells,” sources said.

“Proposals with regard to the solarization scheme can be presented to the federal cabinet next month,” sources said. ” Rs. 90 billion will be shared by the federal government, the province and consumer equally,” according to sources.

The federal government, province and tubewell consumers will share 30 billion rupees each, sources said.

“The sides also negotiating over launching the tubewell solarization scheme in current financial year,” sources shared.

“The energy ministry will consult with the finance ministry, the IMF and the World Bank over the scheme,” sources said. “Tubewell consumers will not be offered subsidy on electricity in budget after implementation of the scheme,” according to sources.

The IMF also urged for coordination among the DISCOs, energy ministry and the NEPRA and implementation of decisions.

The officials of the energy and finance ministries also held a meeting with regard to technical level talks with the IMF mission, sources added.

from ARY NEWS https://ift.tt/HIelzdn