> With Pakistan dependent on bailouts from the IMF, Islamabad finds itself caught between the U.S., which wants to ensure that the Washington-based lender’s loans aren’t being used to pay off Beijing, and China, which fears that the global financial architecture is being turned against it. The most recent IMF bailouts have required hefty increases in electricity rates, leading tariffs to triple or even quadruple for many users compared with six years ago.
Why did the IMF bailouts require higher electricity prices? If the US doesn't want the IMF money going to china, why are they raising electricity rates paid to Chinese built plants?
Are they trying to cause a utility death spiral? Seems counter productive if it just leads to massive Chinese PV imports.
Pakistan had been wasting government funds on subsidizing electricity rates. That's part of why they needed an IMF bailout. Now in order to service the loan they have to stop the subsidies.
> With Pakistan dependent on bailouts from the IMF, Islamabad finds itself caught between the U.S., which wants to ensure that the Washington-based lender’s loans aren’t being used to pay off Beijing, and China, which fears that the global financial architecture is being turned against it. The most recent IMF bailouts have required hefty increases in electricity rates, leading tariffs to triple or even quadruple for many users compared with six years ago.
Why did the IMF bailouts require higher electricity prices? If the US doesn't want the IMF money going to china, why are they raising electricity rates paid to Chinese built plants?
Are they trying to cause a utility death spiral? Seems counter productive if it just leads to massive Chinese PV imports.