Middle East & Central Asia News
LAST UPDATE: July 7, 2025
IMF links bailing out Lebanon to concrete reforms
The IMF released $250 million in emergency funding for Lebanon but clarified that further aid will depend on “concrete reforms.” An IMF delegation is in Beirut to assess conditions before broader disbursement.
Insight
The IMF is tightening its conditionality: short-term relief is provided, but sustained support is contingent on structural reforms. This reflects growing international insistence on accountability and reform in Lebanon’s crisis response.
Shift to solar comes at a price for Pakistan’s national grid
Pakistan rapidly expanded solar installations—importing 17 GW, supplying 10 % of electricity—to offset doubling power costs. But declining demand and unpaid bills are straining the national grid, which carries ~$18 billion in debt. The government plans reforms: cutting net‑metering rates from Rs 27 to Rs 10/unit and imposing a 10 % import tax on panels to prevent richer households from precipitating a grid “death spiral.” Critics warn these measures could dampen solar adoption and hurt low-income consumers.
Insight
Pakistan’s solar boom offers household relief but risks destabilising the centralized power system. The policy recalibration aims to protect the grid’s finances but may stall renewable momentum and penalize vulnerable users.
