Government Increases Electricity Tariff Ahead of IMF Talks

According to reports the incumbent government has increased the electricity tariff in order to service bank loans ahead of upcoming talks with the International Monetary Fund (IMF).

The increase, which will be visible in consumer electricity bills next month, is expected to be about 43 paisa per unit, and the government intends to raise around Rs. 147 billion by what will be known as ‘equalization surcharge’.

Earlier this year, in August, talks with the IMF regarding their review of Islamabad’s economic performance were not positive, and disbursement of over $500 million was suspended.

However, the IMF has agreed to talk again, starting the end of October, and if successful, these talks can lead to a $1.1 billion disbursement later this year.

Reportedly, the tarrif increase was not made public out of concerns that the Pakistan Tehreek-i-Insaf, and Pakistan Awami Tehreek, may use it as fuel for their protests.

Another source, which declined to comment officially, confirmed that the tariff had been increased, but stated that it had nothing to do with the IMF or bank loans. 

He also shared that the National Electric Power Regulatory Authority (Nepra) had turned down the government’s proposal to include the increase in the base tariff, and advised that the federal government could do so by imposing a surcharge.

Consumers will now have to wait and see what comes their way in the upcoming electricity bills.

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Posted by Hunain Naseer on Oct 20 2014. Filed under Latest News, National. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.