Energy ministry hikes electricty unit prices by Rs1.95

ISLAMABAD: The energy ministry of Pakistan has hiked electricity tariffs by Rs1.95 per unit which it claimed is due to a hefty circular debt thanks to previous governments, ARY News reported.

We could jack the prices by Rs2.18 per unit but we did not want to “burden the masses” so we only increased 23 per cent in tariff, said the federal minister for energy Omar Ayub in a joint presser today accompanied by federal planning minister Asad Umer and Prime Minister’s aide on energy Tabish Gauhar.

Ayub said the incumbent government has inherited the circular debt crisis for which it is binding on it to hike the tariffs and translate the impact on the masses. Due to the heavy debts in the energy sector, which he termed a minefield, we had no other option but to expedite clearing off the payables, he said.

On the recent countrywide power breakdown, the minister said it happens everywhere in the world, adding that everyone praised how soon we recovered from it.

It is due to the destructive energy sector agreements made in Pakistan Muslim League – Nawaz tenure that our energy production is 43 pc more expensive than it should be, he claimed.

“They left a huge deficit of Rs227 billion deficit until 2019 and we have to pay it.”

It may be noted that the presser could not clarify as to when this tariff increase will translate into the bills, but only announced the amount of the increase.