ISLAMABAD - Federal budget for the next fiscal year is under discussion in the National Assembly and finance bill is yet to be tabled but National Electric Power Regulatory Authority has allowed the Power Distribution Companies a uniform increase of Rs.150 in electricity tariff.
It is one of the tough conditions included in the staff level International Monetary Fund (IMF) agreement for the frontloaded loan programme of $ 6 billion.
This increase in power tariff is aimed at recovering Rs. 190 billion from electricity consumers within a period of 15 months to reduce the circular debt.
The prices of petroleum products have already been increased and gas tariff jacked.
After the critical comments of a senior official of President Trump administration the international credit rating agencies see risks to the IMF programme.
Fetch has not improved Pakistan rating from B negative despite the staff level agreement with the Washington based multilateral lending agency.
The IMF Executive Board will take up Pakistan’s bail out request in its meeting scheduled for 3rd July.