25 pc power tariff raise expected in 6 months

The government is likely to increase power tariff by 25 percent during next 6 months as agreed with the International Monetary Fund (IMF). The government is expected to receive additional Rs 38 billion of revenue. Ministry of Water and Power spokesman said issue of power tariff raise was under consideration in consultation with IMF and World Bank. According to sources, Pakistan had reached an agreement with the IMF during negotiations on power tariff raise on July 25 to gradually increase electricity price by 25 percent. Sources said Pakistan agreed to raise power tariff up to 6 percent on October 1 and 19 percent on January and March next year. The government will generate additional revenue of Rs 38 billion from this tariff raise and Rs 55 billion subsidy would be given to consumers. Sources told that this power tariff raise would be in addition to the raise due to rental power plants which would affect industrial and domestic consumers.