ISLAMABAD, Nov 24: Pakistan has formally informed the International Monetary Fund (IMF) about the delay in notification of latest tariffs of eight distribution companies of Wapda, as these tariffs fell short of cost recovery for the power entities.

In a statement issued here on Wednesday, the IMF resident mission in Islamabad confirmed that "the papers which have been sent (by the GoP) to the IMF board recommending completion of the last review recognized the delay with regard to the notification of latest tariffs determined by Nepra, as these fell short of cost recovery for the power entities". The papers are expected to be discussed by the IMF board on December 1, 2004, it said.

The statement said the reason why the Pakistan government would not be drawing the last tranche under the PRGF was that it did not at present need the money, which would then become available for other countries in need of concessional support from the IMF.

The statement explained that there was no connection in government's two decisions i.e. not to notify the latest power tariffs and not to draw the last tranche under the PRGF programme with the IMF.