The International Monetary Fund has asked the government to end subsidies for tubewells and introduce a solarisation scheme instead.

The IMF delegation continued its technical level talks with the government on Tuesday, with officials from ministries of finance and energy in attendance.

Sources said that the government has agreed to discontinue subsidies being given to tubewells from next year. However, the Fund’s team wants solarisation to begin in the current fisal year.

The solarisation project is likely to cost Rs90 billion. A third of the cost will each be borne by the federal government, provincial government and the owners of tubwells.

The government will have further discussions on the project with IMF and World Bank and the matter is likely to be put infront of the cabinet next month.

Sources added that the IMF asked for decisions on cooperation between ministries, DISCOs and NEPRA to be implemented as well.

THe IMF team is in Pakistan to review the implementation of its stand-by agreement before the next trnache is released.