The International Monetary Fund (IMF) has asked Pakistan to submit a concrete plan to curb energy sector losses and tackle widespread electricity theft as part of ongoing economic review talks.
During the second round of review discussions, the IMF urged Islamabad to accelerate reforms aimed at improving governance in electricity distribution companies (DISCOs) and to reduce capacity charges that have been driving up costs in the sector.
Pakistani officials assured the IMF delegation that the country is committed to eliminating circular debt well before the six-year target previously set. They informed the Fund that an agreement has been finalized with banks for a loan package worth Rs 1,225 billion to address the debt.
Officials further explained that the repayments will not put any new burden on consumers, as the cost will be covered through an already imposed surcharge of Rs 3.23 per unit. They also noted that surplus electricity will be supplied to the industrial sector and for crypto mining to boost revenues.
The IMF, however, emphasized the need for stronger measures to stop electricity theft, cut line losses, and ensure stricter oversight of power companies. It has pressed Pakistan to move swiftly on governance reforms to stabilize the energy sector and prevent further debt accumulation.
