The IMF delays Pakistan’s request to spread August electricity bills over six months, amid ongoing protests.

Traders join protests, increasing pressure on the government. Government linked approval to IMF endorsement for bill recovery plan. Monthly installments won’t alleviate burden; regular bills and August installments to be paid. Power Division’s proposal to recover bills over three months not approved due to incomplete work and IMF endorsement.

31.4 million consumers (81%) fall within 400-unit consumption category. Electricity bills increased by up to Rs16 per unit for some due to two months’ increase. Cabinet consensus for six-month installments postponed due to financial impact.

IMF reviews proposal’s impact on circular debt, budgeted subsidies, and primary budget surplus target. Pakistan assures IMF compliance with July agreement, temporary relief with no major financial impact. Interim government calls emergency meetings but no decision reached; left pending IMF approval.

Under IMF program, Pakistan committed to annual electricity price increase. Power Division’s targets, goals ambitious; missing previous targets, first revision in circular debt reduction. Circular debt projected to rise significantly, deviation of around 41% in a month