Pakistan and the International Monetary Fund (IMF) are scheduled to hold discussions on Tuesday regarding energy subsidies, tariff adjustments, and climate-related financial policies. The key agenda includes targeted electricity and gas subsidies through the Benazir Income Support Program (BISP), quarterly revisions in gas tariffs to address circular debt, and a proposed carbon levy on vehicles running on liquid fuel.
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As part of broader energy sector reforms, the government is looking to replace existing subsidies with direct rebates for low-income consumers via BISP. Additionally, stricter regulations to combat electricity theft within power distribution companies (DISCOs) are under consideration.
On the climate front, authorities plan to integrate environmental concerns into financial planning by extending climate budget tagging to provincial levels and ensuring greater transparency in expenditure reports. Future Public Sector Development Program (PSDP) projects will require climate impact evaluations before approval.
The Securities and Exchange Commission of Pakistan (SECP) is also preparing to introduce guidelines on climate-related financial risks and establish a classification framework for green finance initiatives to support the country’s commitment to climate resilience.
