KARACHI: The International Monetary Fund is discussing proposed electricity tariff revisions with ​Pakistan authorities, the fund said in a statement to Reuters on Saturday, adding that the burden of the revisions should not fall on middle- or lower-income households.

“The ongoing discussions with the authorities will assess whether the proposed tariff revisions are ‌consistent with these commitments ‌and evaluate their ​potential ‌impact ⁠on ​macroeconomic stability, including ⁠inflation,” it said in its statement.

Pakistan announced proposed tariff overhaul which analysts said would lift inflation while easing pressure on industry, as it seeks to meet conditions under its $7 billion Extended Fund Facility (EFF) as ⁠another review of the program ‌approaches.

The EFF is ‌a longer-term IMF loan program ​designed to help countries ‌address deep-seated economic weaknesses and medium-term balance-of-payments ‌problems.

Electricity carries significant weight in Pakistan’s consumer price index, making tariff adjustments highly sensitive at a time when inflation, though sharply lower than ‌its near-40 percent peak in 2023, remains a key political and economic pressure point.

Pakistan’s ⁠power ⁠sector has long been weighed down by circular debt — a chain of unpaid bills and subsidies that builds up across generation companies, distributors and the government — prompting repeated tariff increases under IMF-backed reforms since 2023.

The accumulation of power sector circular debt has been contained within program targets, supported by improved performance on recoveries and ​loss prevention, the ​Fund added.