The International Monetary Fund (IMF) has demanded an end to budget subsidy for tube well users. According to media reports, the government will spend 90 billion rupees to introduce a solarization system for Pakistan's agriculture sector. The Tubewell Solarization Scheme will be submitted to the cabinet for approval. Of the 90 billion rupees, 30 billion will be provided by the federation, 30 billion by the provinces, and 30 billion by the tubewell users. Discussions were held with the IMF to start the Tubewell Solarization Scheme in the current financial year.

Sources said that the Ministry of Energy consulted with the Ministry of Finance, IMF, and the World Bank on the Tubewell Solarization Scheme. The implementation of the scheme will help tubewell consumers avoid budget subsidies in the next financial year. Nepra is making timely notifications of quarterly adjustments and fuel price adjustments for cost-recognising tariff improvements. The IMF directed cooperation between DISCOs, Ministry of Energy, and NEPRA and speedy implementation of decisions. An important meeting of officials of the Ministry of Energy and the Ministry of Finance has been held in the technical level negotiations with the IMF mission.

 Credit: Independent News Pakistan (INP)