ISLAMABAD: The federal cabinet has endorsed increase in power tariffs in a meeting on Thursday (today), setting the hike in cost of electricity at Rs1.27/unit.
After the federal cabinet session, Finance Minister Asad Umar told in a press briefing that electricity prices would not be raised for domestic consumers using 300 units or less every month.
However, households that consume between 300 and 700 units per month will witness a rise in electricity prices of roughly ten percent and a fifteen percent increase will be made for those consuming above 700 units per month, the minister notified, adding that 95 percent of the consumers will not be affected by this surge.
Umar apprised the media that National Electric Power Regulatory Authority (NEPRA) proposed a hike of Rs3.82/unit, nevertheless, after several considerations by the Economic Coordination Committee (ECC), the federal cabinet today has given a go ahead to an increase of Rs1.27/unit.
“The reason behind the consistent delay in deciding the power tariffs by the government, was because we did not want to put unjustified burden on the masses,” he added.
For industrial sector, an increase of only 75 paisa per unit will be applicable, whereas, the old price will be continued on the use of electricity by schools and hospitals, the Finance Minister informed the press.
Quoting the figures of last year, the Minister said, a loss of Rs453 billion was incurred by the government due to the power sector.
Responding to opposition parties’ criticism for approaching International Monetary Fund (IMF), Asad Umar remarked, the previous government had brought the country on the brink of disaster and now the option of seeking monetary assistance from the IMF can only be avoided, if the export sector is boosted enormously.
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