Govt takes back power subsidy extended to farmers

ISLAMABAD: Federal government has hiked the electricity rates for farmers over IMF conditions for bailout package, ARY News reported on Wednesday.

The government has enhanced power tariff for farmers by Rs 3.60 per unit. The agriculture consumers will get electricity at 16.60 per unit from March 1st, instead of pervious 13 rupees per unit.

Thus, the subsidy on electricity announced under the ‘Kisan Package’ has been taken back under the International Monetary Fund’s condition for the IMF package.

The government will receive 14 billion rupees revenue till June this year on account of the hike power tariff for agriculture consumers.

The power division has written a letter to all power distribution companies including the K-Electric for implementation on the decision.

Federal power division has also sent a copy of the letter to the finance and national food security ministries.

The International Monetary Fund (IMF) chief had recently asked the government to ensure that it taxes the rich people and protects the poor by offering subsidies only to the most deserving people.

“My heart goes to the people of Pakistan. They have been devastated by the floods that affected one-third of the population of the country,” IMF chief Kristalina Georgieva told reporters on the sidelines of the Munich Security Conference.

She stressed increasing revenues by taxing those who are “making good money” and ensuring a fair distribution system.

“It shouldn’t be that the wealthy benefit from subsidies. It should be the poor to benefit from them,” Georgieva said.