The IMF raised the issue of exchange rate devaluation during a meeting with the National Electric Power Regulatory Authority (NEPRA), said the sources. They stated that the IMF also questioned the incorrect electricity consumption assumptions used for the current fiscal year’s annual power tariff adjustments. The higher consumption estimates, subsequently proven wrong, resulted in a hefty increase in electricity bills due to monthly and quarterly tariff adjustments. Pakistan has informed the IMF that electricity prices may skyrocket in July due to simultaneous adjustments on account of monthly, quarterly, and annual increases in tariffs. The IMF was also inquisitive about a lag in passing on the impact of the increase in electricity prices due to quarterly adjustments.

Source: The Express Tribune May 18, 2024 15:25 UTC