IMF says never asked Pakistan to renegotiate CPEC IPP contracts

International Monetary Fund (IMF) has denied that it asked Pakistan to renegotiate energy deals made under the China Pakistan Economic Corridor (CPEC).

A local media outlet had reported last week that the IMF had told the current government to renegotiate energy deals made under CPEC as it suspected Chinese power plants were overcharging.

In a clarification statement, IMF’s representative to Pakistan, Esther Perez Ruiz said that IMF did not ask Pakistan to renegotiate CPEC-related IPP contracts. She called the claims to be fake and untrue. She asserted that the fund had always supported ways for restoration of energy sector requirements.

The IMF loan proceedings have been put to a halt as the government is engaged in negotiations with the lender. The fund has expressed reservations regarding the removal of subsidies upon fuel and energy.

After insistence from IMF, government has been busy in making adjustments according to the fund’s requirement. Fuel prices in the country have been increased as well as electricity and gas tariffs have also been revised.