The International Monetary Fund (IMF) is currently in discussions with Pakistani authorities regarding proposed electricity tariff revisions, emphasizing that these changes should not disproportionately affect middle- and lower-income households. According to a statement given to Reuters, the IMF is evaluating whether the proposed adjustments align with the commitments under Pakistan's $7 billion Extended Fund Facility (EFF) and their potential impact on macroeconomic stability, particularly inflation. As reported by Daily The Patriot and ProPakistani, the proposed tariff overhaul is part of Pakistan's efforts to meet conditions under the EFF, which aims to address deep-seated economic weaknesses and balance-of-payments issues. Analysts suggest that while the tariff changes could ease industry pressures, they may also lead to increased inflation, a significant concern given Pakistan's recent history of high inflation rates, which peaked near 40% in 2023.
ECONOMY
IMF Discusses Electricity Tariff Revisions with Pakistan Authorities

IMF discusses Pakistan's electricity tariff revisions, stressing minimal impact on low-income groups. Changes aim to meet EFF conditions but may raise inflation, affecting economic stability.
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