Government wants IMF to relax power tariff hike situation.

Pakistan has requested the International Monetary Fund to relax the condition of immediate increase in electricity tariffs due to an already double-digit inflation and unfavourable political conditions.

The government has assured the IMF that it would adhere to the overall circular debt reduction plan and annual revenue requirements goal despite delaying the notification, sources in the Ministry of Finance and the Ministry of Energy told.

After a steep shortfall in tax revenues, an ever-expanding circular debt remains another sensitive area during the ongoing second review talks between Pakistan and the IMF.

The government on Thursday reviewed its energy sector-related options during a meeting at the finance ministry that was also attended by Jahangir Tareen, the former secretary general of the Pakistan Tehreek-e-Insaf.

Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh chaired the meeting to discuss different issues related to the power sector, according to an official handout.

The Central Power Purchase Agency-Guaranteed (CPPA-G) gave a presentation about the IMF's demand to increase the tariff and the government's alternative option, said the sources.

According to the IMF deal, the government will continue to notify tariffs for capacity payments on a quarterly basis shortly after the end of preceding quarter, and the next adjustment will take place by end-January 2020 - a deadline that has already lapsed.

The tariff update...