IMF response on electricity relief plan in a ‘day or two’

Caretaker Power Minister Muhammad Ali on Friday said that the government’s plan to provide relief to electricity consumers had already been sent to the International Monetary Fund (IMF) for approval and they are expecting a response in a “day or two”. “The plan to provide relief on electricity bills has been sent to the IMF. The IMF will give a response on the relief plan in a day or two,” Ali said in a press conference after the Special Investment Facilitation Council’s (SIFC) Apex Committee meeting. Addressing a news conference along with Caretaker Minister for Information and Broadcasting Murtaza Solangi, Caretaker Minister for Commerce and Industry Dr Gohar Ejaz and Caretaker Minister for Finance, Revenue, Economic Affairs and Privatization Dr Shamshad Akhtar, he stressed the need of exploring oil and gas reserves in order to reduce the import bill. He said matters related to power generation and petroleum were also discussed in the meeting of Special Investment Facilitation Council (SIFC). The minister said since 2013 work on the exploration of gas and oil had been lessened while annual import bill to meet their shortage persistently increased with rising circular debt. “We have to focus on exploration of oil and gas so that we can reduce our dependence on the imported fuel,” he added. The SFIC reviewed the possibility of evolving a mechanism under which the power plants could supply electricity directly to the industry after paying the wheeling charges, he added. The minister said the gas sector was also facing alarmingly high losses.”We have to improve the gas pricing structure in order to save the government from losses.” He said the meeting discussed as to how the industry could be provided the required gas despite its increased domestic consumption in the winter. “We have to install more liquefied natural gas (LNG) terminals and also bring in more LNG in the coming days so that the industries can work to their full potential.” On the other hand, interim Finance Minister Akhtar said that they are developing a policy on state-owned enterprises and establishing a central monitoring unit which will help strengthen the corporate governance of these entities and help various ministries. The finance czar also added that the move will help take forward the state-owned enterprises for public listing or privatisation in the long run. “What we are trying is to push the debt burden of state-owned enterprises,” Akhtar said, adding that currently, the burden is solely on the banking sector and the government borrowing from banks also affects that. “We will diversify it through the capital market. This will not only increase the depth of the capital market but we will try to float government securities on the PSX so that their maturity is stretched and a common man can invest in government securities. This will hopefully have an impact as liquidity will increase and pricing adjustments will happen as well,” the finance minister said. She further said that there is a “need to revive the economy and end restrictions” on imports. Akhtar added that action is being taken against the smuggling of currency and commodities that will yield a positive result. Meanwhile, as per the official statement issued after the SIFC apex committee meeting, Caretaker Prime Minister Anwaar-ul-Haq Kakar has directed the ministries to “deliver optimal results irrespective of the time” they have so that a “strong foundation” is laid for the next government. It was the fifth Special Investment Facilitation Council’s (SIFC) Apex Committee meeting. The meeting was attended by Chief of Army Staff (COAS) General Asim Munir, federal cabinet members, provincial chief ministers and high-level government officials. The committee had met the “singular focus” on improving the “overall business and investment environment” in the country which is needed for “economic revival”. In the high-level huddle, ministries concerned presented their plans and roadmaps to overcome the “macroeconomic challenges, governance-related impediments and voids in regulatory mechanisms in a bid to attract both foreign and domestic investment and stimulate economic growth”. “The Committee deliberated upon various measures to be taken in short, medium and long term to reap the envisaged dividends. Various practical steps were approved by the Prime Minister that will be operationalised as soon as possible,” the PM Office said.