SIFC pushes for IMF nod on Rs1.27t energy debt

The Special Investment Facilitation Council (SIFC) on Friday directed the authorities concerned to urgently secure the International Monetary Fund’s (IMF) approval for the clearance of Rs1.27 trillion energy sector unpaid debt aimed at avoiding any further increase in electricity and gas tariffs to retire the debt.

If the cost of circular debt is passed on to the consumers, the electricity tariff will go up by Rs24 per unit, hitting Rs66 per unit. Similarly, gas tariff may also go up by Rs5,800 per metric million British thermal unit (mmbtu) for all consumers, which is more than double the existing rates.

The energy ministry has proposed settling the debt without increasing the tariff and without having any impact on the budget.

The instructions to immediately secure the approval of the IMF were given to the finance and energy ministries during the 9th meeting of the SIFC, which was also the last meeting of the civil-military body before the general elections.