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IMF demands to launch solarization scheme for tube-wells

ISLAMABAD (Eshfak Mughal): The International Monetary Fund (IMF) has demanded to end subsidy on tube-wells and to introduce solarization scheme to save the public money, sources claimed.

An IMF review mission holding technical talks with the Pakistani authority to review the country’s economic performance during the first quarter of the current fiscal year, from July to September.

During the technical talks with the authorities on the issue of electricity subsidy, the IMF team has suggested solarization scheme for tube-wells, sources claimed.

IMF suggested solarization for tubwells

The country has to spend around Rs. 90 billion on the solarization scheme for tube-wells,” sources said.

“Proposals with regard to the solarization scheme can be presented to the federal cabinet next month,” sources said. ” Rs. 90 billion will be shared by the federal government, the province and consumer equally,” according to sources.

The federal government, province and tubewell consumers will share 30 billion rupees each, sources said.

“The sides also negotiating over launching the tubewell solarization scheme in current financial year,” sources shared.

“The energy ministry will consult with the finance ministry, the IMF and the World Bank over the scheme,” sources said. “Tubewell consumers will not be offered subsidy on electricity in budget after implementation of the scheme,” according to sources.

The IMF also urged for coordination among the DISCOs, energy ministry and the NEPRA and implementation of decisions.

The officials of the energy and finance ministries also held a meeting with regard to technical level talks with the IMF mission, sources added.

It is pertinent to mention here that the the technical talks will remain during the current week. Both parties will hold Policy talks of the first review meeting next week. Pakistan will get $710 million from the Fund after successful conclusion of the first review.

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