Pakistan has been ordered by the International Monetary Fund (IMF) to raise power and gas rates in order to match energy pricing with cost recovery.
According to the IMF’s staff report released after the Fund’s Executive Board approved the sixth review and $1 billion tranche under the $6 billion Extended Fund Facility (EFF) for Pakistan, regular implementation of tariff adjustments in line with established formulas was critical to lend credibility to the newly-independent energy regulator, stop arrears accumulation, and implement the Circular Debt Management Plan (CDMP).
