ISLAMABAD: The federal cabinet has made another decision to enforce a significant requirement of the International Monetary Fund (IMF) — to raise electricity tariffs.
According to a private media report, the federal cabinet has approved an increase in the basic electricity tariff, and this approval has been obtained through a circulation summary.
The National Electric Power Regulatory Authority (Nepra) had submitted a decision to the federal government to increase the basic electricity tariff by an average of Rs5.72 per unit.
As per media sources, the federal cabinet’s decision will be sent to Nepra for a uniform tariff. Following Nepra’s approval, the federal government will issue a notification to increase the basic electricity tariff.
According to the report, under IMF conditions, the federal government must increase the basic electricity tariff by July 10.
As per Nepra’s decision, the increase in the basic electricity tariff will impose an additional burden of about Rs600 billion on consumers.
Nepra will increase the basic electricity tariff for the financial year 2024-25, and the approved increase will be implemented from July 1, 2024, according to sources.
Nepra has approved an increase in the average basic electricity tariff for the financial year 2024-25 from the current Rs29.78 to Rs.35.50 per unit.
In the last financial year ended on June 30, the federal government had increased the basic electricity tariff by Rs7.50 and in the financial year 2022-23 the basic electricity tariff had been increased by Rs7.91 per unit.
The federal government had increased the basic electricity tariff for the last financial year 2023-24 in lump sum while in the financial year 2022-23, the increase in the basic electricity tariff was done in 3 phases.
Pakistan is looking to clinch a staff-level agreement on an IMF bailout of more than $6 billion this month after addressing all of the lender’s requirements in its annual budget, a state minister told Reuters.
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