Govt okays massive hike in power tariff on IMF demand

ISLAMABAD: In a late-night move, the federal cabinet approved a massive hike in electricity base tariff through circulation summary as Pakistan is moving ahead to meet the IMF conditions, ARY News reported on Saturday citing sources.

Sources privy to the development told ARY News that the federal government has increased the basic power tariff by Rs3 to Rs7.5 per unit for several consumers.

The cabinet approved hike in power tariff on the recommendation of the National Electric Power Regulatory Authority (Nepra).

According to the proposal, the government recommended an increase of Rs3 per unit for the non-protected residential consumers using 1 to 100 units which will take the current per unit cost from Rs 13.48/unit to Rs 16.48/unit.

Similarly, for the residential consumers using above 700 units, the government proposed a hike of Rs 7.5/unit from the existing Rs35.22/unit to Rs 42.72/unit.

Sources say the government has sent the matter to the Nepra to increase the tariff and the regulator will hold a public hearing to decide the matter before releasing a final notification.

If approved, the new tariff will take effect from July 1.

Nepra on July 14 allowed the federal government an increase of Rs 4.96/unit in base electricity tariff.

The move comes as Prime Minister Shehbaz Sharif had reassured IMF Managing Director Kristalina Georgieva that he would not tolerate an iota of violation of the agreement reached with the global lender.