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‘Just not true’: Pakistan didn’t ask for CPEC energy deal renegotiation, IMF clarifies – Pakistan

Representative of the International Monetary Fund in Islamabad, Esther Perez Ruiz, explained that money lender did not ask Pakistan to renegotiate energy deals made under the China-Pakistan Economic Corridor (CPEC), calling the reports “simply false”.

Ruiz clarified in yesterday’s (Wednesday) statement, which did not specify what the rebuttal was in answer to.

Express Tribune informed last week when the IMF asked Pakistan to review energy deals made according to KPEC before making payments of about 300 billion rupees to the Chinese power plants.

” global the lender asked government to treat Chinese CPEC power plants at face value with in power factories established in accordance with 1994 and 2002 power policies,” the report cited sources adding that they also confirmed that “the IMF suspected that Chinese IPRs (independent power factories) could inflate prices in Pakistan, and need reopen those deals.

In addition, the report states that the sources in The Ministry of Finance reported that the IMF also objected to giving Rs 50 billion to Chinese IPRs in February without renegotiation of transactions.

Report also included Ruiz’s comments, stating that she “emphasized need for fair treatment of all power sector stakeholders due to limited fiscal space”.

So far the report has not confirmation or Ruiz’s denial that the IMF asked Pakistan to revise the CPEC energy agreements, she rejected the report in her statement was released yesterday.

“The IMF did not ask Pakistan to revise the terms of the CEPC [sic] IPP contracts. These claims are simply not true. Rather, the IMF supports the multilateral government strategy restore the viability of the energy sector, which shares burden of restoring the vitality of all stakeholders – government producers and consumers,” the statement said.

Application received as government strives to comply with IMF goals in hopes to renew its $6 billion credit line, which has been suspended since April.

The IMF loan was put on hold as negotiations between new coalition government and international money creditor remain unconvincing, with the latter had previously expressed reservations over fuel and energy subsidies introduced by the previous PTI government and now over goals set through new government for upcoming fiscal year.

In related move, government raised fuel prices up up to 29 percent on Wednesday (yesterday), the abolition of fuel subsidies.

This is the third cut in fuel subsidies in about 20 days announced Finance Minister Miftah Ismail during an overnight press conference where he said prices of all products have now been delivered to their purchase price and element of subsidy or price the differential claim was eliminated.

Previously in May, he stressed at a press conference, need fulfill all obligations made with IMF under PTI deal government, calling the promises “sovereign”. But he had an added promise to them made block CPEC did not have chance stand.

minister did not specify on the promises he had in mind regarding the CPEC.


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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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