The International Monetary Fund (IMF) has expressed satisfaction over Pakistan’s progress in implementing energy sector reforms, urging the government to maintain the momentum, sources said.
During ongoing review talks, the IMF delegation held meetings with officials from the Power Division and Petroleum Division to assess the reforms and challenges in the energy sector. Key officials, including Zia Azam Muhammad Ali and Secretary Power Division, as well as Secretary Petroleum, Additional Secretary Petroleum, and DG Gas, briefed the IMF team on the progress made so far.
The delegation was provided with updates on issues related to power and gas sectors, including the privatization of power companies and efforts to control circular debt. Sources revealed that Pakistan has met its energy sector targets agreed upon with the IMF by December 2024, with the circular debt of the power sector reported at Rs 2,384 billion, compared to Rs 2,393 billion in June 2024.
The government has initiated the privatization process for three state-owned electricity distribution companies (DISCOs) in the first phase, including IESCO, FESCO, and GEPCO. A financial advisor has already been appointed to oversee the privatization process.
Additionally, authorities informed the IMF that electricity tariff adjustments have been implemented on time, including a Rs 7.12 per unit increase in the base tariff in July 2024. The second quarterly tariff adjustment for the current fiscal year has also been reviewed by NEPRA.
The IMF delegation acknowledged the government’s efforts to stabilize the energy sector but stressed the need for consistent implementation of reforms to ensure long-term sustainability.