IMF terms: Govt jacks up power tariff for agricultural sector

ISLAMABAD: The federal government raised the power tariff for agricultural consumers and withdrew the subsidy under the Kissan package to meet International Monetary Fund (IMF) terms, ARY News reported on Wednesday.

According to details, the subsidy given to agricultural consumers of Rs 3.60 per unit under the Kissan Package has been withdrawn to meet the conditions of the next loan tranche from the IMF.

Agricultural consumers now have to pay Rs 16.60 per unit for power tariffs. In this regard, the federal government will recover Rs 14 billion from agricultural consumers till June.

Meanwhile, the power division companies penned down a letter to the electricity distribution companies, including K Electric, to ensure the implementation of the decision.

Read more: PAKISTAN-IMF AGREEMENT: GOVT AGREES ON RAISING ELECTRICITY, GAS PRICES

Earlier in the day, The federal government jacked up the power tariff for the export industry by Rs 12.13 per unit.

As per details, the increase in power tariff is made to implement the International Monetary Fund (IMF) conditions.

The government also has ended the subsidy on power for the export industry.

The power supply to the export industry at Rs 19.99 per unit has been withdrawn and the notification will be effective from today.

The power division has written a letter to K-electric and all the power distributing companies for the implementation of this decision.

The decision to withdraw subsidy on electricity for exporters will generate Rs 51 billion.

Earlier, the federal government agreed to raise the prices of electricity and gas as Pakistan and International Monetary Fund (IMF) moved closer to the revival of $7 billion Extended Fund Facility (EFF) stalled for months.

The Fund and Pakistan had moved closer to the revival of their loan package as Islamabad agreed to several conditions including increasing energy prices and improving tax collection, as demanded by the IMF.