The IMF and Pakistan “share” a power rate arrangement.

The silhouette of the high voltage power lines during sunset.

ISLAMABAD: According to reports cited by ARY News, Pakistan has provided the International Monetary Fund with a proposal for power tariffs for the export industry.

According to specifics, the government of Pakistan has suggested cutting the power rate for the export industry from 14 cents to 9 cents. According to people with knowledge of the situation, the plan will be implemented following the foreign lender’s consent.

It should be mentioned that the decision to reduce the electricity tariff for the export industry was previously rejected by the International Monetary Fund (IMF).

Pakistan’s export industry has been pleading with the government to reduce the electricity rate in order to increase exports from the nation.

See also: IMF lowers Pakistan’s projected growth rate for 2024 to 2%

In its World Economic view (WEO), the International Monetary Fund (IMF) earlier lowered down Pakistan’s growth projection for the fiscal year 2024 to two percent, a 0.5 percent decrease from the October view.

Pakistan’s growth projection was revised downward by 0.5 percentage points from 2.5 percentage points in October’s prediction, citing a “sluggish pace” of development in the current fiscal year, according to the Fund’s World Economic prediction (WEO) report.

The government’s targeted 3.5 percent GDP growth for the current year is not met by the IMF’s most recent growth prediction. Nonetheless, the Fund projects a 3.5 percent rate of economic growth for the next fiscal year 2025.