Ahmed Mukhtar Naqshbandi
ISLAMABAD: The federal government of Pakistan has decided to immediately implement the conditions set by the International Monitory Fund (IMF) for the restoration of the loan program.
The federal cabinet has sanctioned a plan to increase the price of electricity and end subsidies.
Under the approved plan, the electricity tariff will increase by Rs7 per unit for domestic consumers till June this year.
Moreover, the subsidy on electricity for the export sector and farmers will end in March, while a subsidy of Rs12.13 per unit of electricity will be returned to the export sector.
According to officials, about Rs250 billion will be recovered from electricity consumers by June.
Under the plan, a surcharge of Rs3.39 per unit will be levied, while the electricity rate will also be increased under quarterly adjustments. By June, the increase in quarterly adjustments will yield Rs73 billion.
Power tariff for domestic and commercial consumers
Under the quarterly adjustments, the electricity price will be jacked up by Rs4.46 this month. The average increase in tariff in February will be Rs3.21 per unit, while in March, the price of electricity will be increased by 69 paisas in the quarterly adjustment.
In the quarterly adjustment in June, electricity will cost Rs1.64 and Rs1.98 per unit in the quarterly adjustment in September.
By June, Rs65 billion will be generated by ending the subsidy for the export sector and farmers. Moreover, Rs51 billion will be obtained by ending subsidies on electricity for exporters, while Rs14 billion will be gained by ending subsidies on electricity under the Kisan Package.
