- Price per unit is expected to rise to Rs3.75
ISLAMABAD: The federal government has prepared a summary regarding a hike in power tariffs, sources said on Monday.
According to sources, the summary has been prepared and will be approved during a meeting of the Economic Coordination Committee (ECC) scheduled to be chaired by Finance Minister Asad Umar tomorrow.
“Recommendations have been made for an increase in prices for the years 2016-17 and 2017-18 as per which the price per unit is expected to rise to Rs3.75,” sources added. “With the recommended rise in power tariff, an additional Rs400 billion per month is expected to be collected from consumers,” sources added.
Last month, the National Electric Power Regulatory Authority (NEPRA) approved an increase of Rs1.16 per unit in electricity prices. However, the ECC had deferred announcing an increase in the price of electricity.
The ECC had allowed raise in the gas prices for domestic consumers in the range of 10 per cent for the lowest slab consumers to 143 per cent for the highest slab domestic consumers.
The ECC increased gas slabs for the domestic sector from three to seven with an aim to “pass on the minimum burden on the poor” of the country.
Meanwhile, the expected increase in power tariff comes after Pakistan formally approached the International Monetary Fund (IMF) for a bailout package, which is reported to amount between $10 to $12 billion.
The IMF has demanded ‘absolute transparency’ of Pakistan’s debts, in order to determine the debt sustainability of countries seeking IMF loans.
“In whatever work we do, we need to have a complete understanding and absolute transparency about the nature, size, and terms of the debt that is bearing on a particular country,” Lagarde said in a news conference when questioned about Pakistan’s debts to China.
Earlier, an IMF delegation that were on a week visit to Pakistan urged the authorities to increase tariff on gas and electricity, and has urged the government to increase its tax base.
