Pakistan assures World Bank to raise electricity tariffs

Pakistan has assured the World Bank that it will increase electricity tariffs. The power tariffs would be increased in three phases from 22 to 26 percent. According to Finance Ministry sources, it is decided after the three-day dialogues between the World Bank and Pakistan government that the increase would be phased, as the power tariffs would be raised six percent in October of the current year. The second raise of 12 percent would be affected in January 2010. However, the final decision would be taken after the approval of President Asif Ali Zardari. It is also decided in the dialogues that the government will provide 100 mcf gas for the production of electricity. Electricity tariffs have already increased by 18 percent during the last year.