IMF applauds Pakistan’s progress on energy sector reforms

The International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s progress on energy sector reforms, sources told Nukta.

In a series of meetings held with officials from the Power Division and Petroleum Division, the IMF delegation emphasized the importance of continuing reforms initiated in the energy sector.

The IMF delegation was briefed on ongoing reforms in the energy sector, as well as progress made on privatizing state-owned electricity companies and addressing circular debt.

Sources reported that updates on the power and gas sectors, including efforts to achieve agreed targets, were shared with the visiting officials.

Government officials noted significant achievements, including bringing circular debt under control.

By December, circular debt in the power sector stood at PKR 2,384 billion, down slightly from PKR 2,393 billion in June.

Privatization efforts for three state-owned electricity distribution companies—IESCO, FESCO, and GEPCO—are underway, with financial advisors already appointed.

The IMF was also updated on measures taken to adjust electricity tariffs, with the base tariff raised by PKR 7.12 per unit in July.

Timely implementation of quarterly tariff adjustments is reportedly being carried out, and hearings for the second quarterly adjustment have been held by the National Electric Power Regulatory Authority.

Pakistan had reportedly met its targets agreed upon with the IMF by December, demonstrating progress in implementing the energy sector reforms outlined in the program.