IMF assured to boost DISCOs’ governance, credibility

Pakistan has assured the Inter­national Monetary Fund (IMF) that it will create a dedicated police force for all power dis­tribution companies (DISCOs) and recognize electricity theft as a cognizable offense which is necessary for improved DISCO governance and enforcement capability. Pakistan has also as­sured the IMF that the country will strive to reduce capacity payments as they pay arrears, ei­ther by renegotiating PPAs with a new strategy or by lengthen­ing the duration of bank loans, depending on adequate budget space and CDMP implementa­tion progress, IMF said in its country report on Pakistan .

The same principle applies to the assumption of PHPL amorti­zation by the federal budget. We will also continue to refrain from netting out cross-arrears (un­less they are independently au­dited); using “non-cash” settle­ments (e.g., payables against the reimbursement of on-lent loans to DISCOs); and issuing govern­ment guarantees (e.g., for PHPL-issued Sukuks to transfer CPPA-G payables to PHPL)

Read more: https://www.nation.com.pk/22-Jan-2024/imf-assured-to-boost-discos-governance-credibility