The International Monetary Fund (IMF) has called for the discontinuation of budget subsidies for tube well users in Pakistan.
To promote the adoption of solar power systems in the country’s agricultural sector, a 90 billion rupee investment is planned for the Tube Well Solarization Scheme, which is awaiting cabinet approval. Of this total amount, 30 billion rupees will be contributed by the federal government, 30 billion by provincial authorities, and 30 billion by tube well users.
Discussions with the IMF have centered on launching the Tubewell Solarization Scheme during the current fiscal year. The Ministry of Energy, in collaboration with the Ministry of Finance, the IMF, and the World Bank, has discussed the scheme’s implementation. The objective is to eliminate subsidies for tube well users in the next fiscal year’s budget by implementing the scheme.
Furthermore, the National Electric Power Regulatory Authority (Nepra) is diligently notifying quarterly adjustments and fuel price changes to facilitate tariff adjustments that reflect the actual costs. The IMF has stressed the need for cooperation between Distribution Companies (DISCOs), the Ministry of Energy, and Nepra to expedite decision implementation.
It is important to note that technical-level negotiations with the IMF mission have taken place, involving officials from the Ministry of Energy and the Ministry of Finance.
