Govt preparing massive hike in electricity prices under IMF pressure

ISLAMABAD (Dunya News) - The Pakistan Tehreek-e-Insaf (PTI) government has decided to raise electricity prices considerably over the next few years, supposedly under the pressure of International Monetary Fund (IMF).

According to a document received by Dunya News, the federal government will have increased the price of electricity by Rs 4.6 per unit by the year 2023.

In the short term, electricity price is set to rise by Rs 2.55 per unit by June 2021. The government aims to collect Rs 880 billion rupees through this phased price increase.

According to the document, the price of electricity will rise from Rs 16.44 per unit to Rs 18.99 by June 2021. In 2022, the price will further increase to Rs 20.49, a Rs 1.5 hike.

Finally, in 2023, the per unit price of electricity will be increased to Rs 21.4.

Pakistan has given its roadmap to the IMF, outlining an end to electricity subsidies. The government is prepared to enforce the price increase through an ordinance after it is approved by the cabinet via summary circulation.