Govt okays enormous Rs7.50 per unit hike in basic power tariff
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The federal cabinet has approved Rs7.50 per unit increase in the basic tariff of electricity, reported 24NewsHD TV channel on Saturday.
Sources told 24News that the cabinet’s approval of the summary was taken through circulation.
The National Electric Power Regulatory Authority (NEPRA), on the other hand, had okayed hike in the basic tariff by Rs4.96 per unit.
Pakistan assured International Monetary Fund (IMF) to increase electricity prices in the current FY2023-24 to control the ballooning circular debt in the power sector in order to secure the badly needed $3 billion stand-by arrangement (SBA) from the Fund last month.
Reportedly, Pakistan’s finance ministry and IMF finalised the plan to control the circular debt in the current financial year by hiking the power tariff.
The IMF ‘warned’ Pakistan that failure to curtail circular debt of the power sector would be considered a violation of the agreement and conditions for the loan programme in the future would be tough.
Reporter: Awais Kiani