Govt’s Dream of Providing Cheap Electricity Shattered as IMF Rejects Proposal

Islamabad:The government’s dream of providing affordable electricity to the public has been dashed as the **International Monetary Fund (IMF)** has rejected the proposal to reduce **sales tax** on electricity bills.

According to reports, the **federal government** had sought the IMF’s approval for a reduction in the **sales tax** to make electricity more affordable for consumers. However, the IMF has turned down the government’s suggestion, stating that **tax exemptions** cannot be granted under the existing loan program.

The IMF emphasized that such a reduction would hinder Pakistan’s ability to meet its tax collection targets, and would negatively impact fiscal discipline. The **IMF** has stressed that meeting the tax targets is essential for Pakistan’s economic stability and for securing continued support under the **IMF loan program**.

Earlier, reports had surfaced that the **federal government** intended to reduce the electricity cost by **PKR 10 per unit**. **Prime Minister Shahbaz Sharif** had also mentioned that discussions would be held with the IMF regarding the **electricity price reduction**.

While addressing a ceremony at the **Pakistan Stock Exchange** in Karachi, Prime Minister Shahbaz Sharif reiterated the challenge of **taxation** for businesses and investments. He said, “The current tax system is not allowing businesses to thrive, but we must honor the commitments made to the IMF. Once the time is right, we will bid farewell to the IMF.”

The Prime Minister also mentioned that while the **interest rate** has come down to **13%**, his goal is to reduce it further to **6%**. However, he acknowledged that decisions would be made only after evaluating all available options.

In his address, Shahbaz Sharif called for a **realistic assessment** of the current economic situation and urged **businessmen** to meet with him soon to discuss areas of improvement and challenges. He criticized those who believed that everything was fine, stating, “Only those living in a fool’s paradise believe that everything is fine.”