ISLAMABAD – Cabinet has accorded approval to increase in price ofelectricity by 1.27 rupees per unit.
Briefing about the cabinet decisions in Islamabad on Thursday afternoon,Minister for Finance Asad Umar said loss to the tune of 453 billion rupeeswas witnessed in power sector last year which could reach 550 billionrupees this year if no steps are taken to check this. This loss putsadditional burden on ordinary consumers in the form of enhanced rates ofelectricity or government taking more foreign loans.
He said NEPRA had recommended 3.82 rupees per unit increase in the price ofelectricity. This was determined in August this year, before the currentgovernment assumed power.
Asad Umar said consumers using less than 300 units per month that areequivalent to 100 million consumers will have no impact of price increase.
He said rates have been increased by ten percent for consumers using from300 to 700 units of electricity per month while an increase of 15 percentis those who utilize more than 700 units a month.
Finance Minister said no increase has been made in price of electricity forcommercial consumers who use connections less than 50 KV. They areequivalent to 95 percent of businessmen.
He said the cabinet decided to continue the subsidized agriculture rates of5.35 rupees per unit, reduced from 10.35 rupees, for the whole financialyear.
He said government is making efforts to give support to the exportsindustry to enhance its share in the national income. He said 78 paisa perunit is being increased for industry. Asad Umar said no increase will bemade in electricity prices for school, hospitals and other institutions.
Asad Umar said 140 billion rupees have been saved this year due toimprovement in electricity distribution system.
He said despite steady increase in oil prices worldwide, the prices ofpetroleum products in Pakistan have not been increased by the government.
Speaking on the occasion, Minister for Power Umar Ayub said a campaignagainst power thieves will start from day after tomorrow in Lahore andraids will be held at establishments where there are reports of powertheft. He said those caught stealing power will be fined heavily.
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Addressing the event, Information Minister Chaudhary Fawad Hussain said thecabinet decided that first Pakistani will be sent to space in 2022. Anagreement has been signed to this effect between SUPARCO and their Chinesecounterpart. He said PTI government has a clear stance that corruptelements will not be spared and all efforts will be made to recover lootedmoney from them. He said in order to empower NAB, the cabinet decided toconvert ordinary passports of NAB officials into official blue passports.
Information Minister said cabinet also decided that National TestingService will be made more effective and Minister of Education ShafqatMahmood has been given the task to evaluate the service and present astrategy to make it more effective and credible.
He said cabinet also accorded approval to appoint Lt. Gen. Abdullah Dogaras Chairman Heavy Industry Taxila.
The cabinet approved the reduction in visa fee of Pakistani workers toSaudi Arabia from 2000 riyals to 300 riyals.
Replying to a question, Finance Minister said Pakistan and Saudi Arabia arebrotherly countries with deep bonds of religion, history and culture. Hesaid Pakistan will act as a bridge to develop friendship between Muslimcountries and will not be part of any campaign to harm any brotherly Muslimcountry.
Clarifying to a questioner on the financial package agreed with SaudiArabia, the Finance Minister said 3 billion dollars will be placed withState Bank of Pakistan. In addition, facility of buying oil from SaudiArabia worth 3 billion dollars on deferred payments has been agreed. Thisfacility is for three years and would translate to 9 billion dollars intotal.
He said government is exploring various avenues for its financing needs andIMF is one of these.
Asad Umar told a questioner that there is no plan of closing down UtilityStores Corporation. The cabinet in its previous meeting had asked Advisorto Prime Minister on Commerce Abdul Razak Dawood to come up withsuggestions to improve the working and functioning of this organization.
When asked about Saudi Arabia becoming a strategic partner in ChinaPakistan Economic Corridor, the Finance Minister said CPEC is a bilateralproject between Pakistan and China and no third country can become part ofit. However, investments by other countries could be made in individualprojects falling under the CPEC.
