The International Monetary Fund (IMF) has enabled the Pakistani government to reduce electricity stars by RS1 per year. Kilowatt-time for all consumers.

The relief is financed through revenue collected through a tax imposed in captivity force by means of natural gas, the IMF said in a statement.

The move is part of a wider relief package that the government is working on for electricity users.

According to official sources, the reduction could reduce the financial burden of consumers by up to RS100 billion. A household that consumes 500 units of electricity would see a monthly saving of the RS500 under the new plan.

The relief is financed through revenue generated from a tax imposed gas consumed by captivity works. The IMF stated that the decision is part of ongoing reforms in the energy sector.

Developments come days after Pakistan and IMF reached an agreement at staff level that locked access to an additional $ 1 billion under the extended fund facility (EFF).

According to the IMF, inflation in Pakistan has reached its lowest point since 2015, and the country’s economic indicators show signs of further improvement.

The IMF’s Executive Board will approve EFF’s second tranche of $ 1 billion and $ 1.3 billion RSF New Facility either by the end of April or early May, according to Pakistani authorities.

However, the fund releases only $ 1 billion, while $ 1.3 billion will be given over a period of 28 months and subject to implementation of approx. 13 conditions, including carbon tax.