ISLAMABAD – Yet another big hike in electricity prices is on cards by PTIgovernment following agreement with the IMF.
The government of Pakistan, following its agreement with The InternationalMonetary Fund (IMF) is likely to increase the power tariff by another Rs3.5per unit, a local media outlet reportedlink.
According to the report published, the Pakistan Tehreek-e-Insaf governmentplans to increase power tariff by Rs3.5 per unit by clubbing the impact ofthe hike in gas prices for the current fiscal year.
The Power Division, as per the IMF’s condition, has imposed a quarterlyautomatic tariff adjustment it the power sector of 10 per cent to cope upwith the circular debt by generating an additional Rs150 billion in thefirst half of FY 2019.
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Moreover, the remaining adjustments costs are to be passed onto theconsumers towards the end of August 2019. Meanwhile, electricity tariffschedule for FY2020 will be notified by the government towards the end ofSeptember 2019.
According to sources cited it the report, the Power Division has recentlysuggested a list of measures to reduce the line losses and circular debt tozero. It has been suggested that to stop further accumulation of debt dueto the quarterly adjustments in the per-unit cost to the consumer, theper-unit cost should be kept between Rs12.98 per unit to Rs13.85 per unitin March 2019 and Rs15.31 per unit in June 2019.
