Govt assures IMF team of hike in power tariff

ISLAMABAD: The federal government has assured the International Monetary Fund (IMF) team of a hike in the power tariff, ARY News reported citing sources.

According to sources, the government will increase the power tariff by Rs 6.79 per unit and it will increase stepwise in the next five months.

The power division briefed the IMF team about the plan to reduce the circular debt by increasing electricity prices and preventing power theft and line losses.

In the ongoing month, the power tariff will increase up to Rs 4.46 per unit under quarterly adjustment. In February the tariff will hike by Rs 3.21 per unit. In March and June, the power tariff will increase by Rs .69 and Rs 1.64 per unit respectively.

Earlier, Pakistan and the International Monetary Fund (IMF) have begun talks on a ninth review of $7 billion Extended Fund Facility (EFF).

The International Monetary Fund (IMF) shared lists of prerequisite actions and told Pakistani authorities in plain words that Islamabad will have to move towards implementing all demands for reviving the stalled Fund programme.

IMF has asked Pakistan to take all required actions that could pave the way for striking a staff-level agreement and releasing of $1 billion tranche under the Extended Fund Facility (EFF).