Govt notifies recently-approved Rs1.25 power tariff hike
Business
Increase is made under Fuel Charges Adjustment
ISLAMABAD (Dunya News) – The recent hike in electricity tariff was notified on Monday as the country braces the impacts of record-high inflation and interest rate under a combination of internal and external factors.
Last week, the National Electric Power Regulatory Authority (NEPRA) had approved the Rs1.25 per unit price increase under Fuel Charges Adjustment (FCA) – a move that will result in an additional burden of Rs46.76 billion.
The power distribution companies (Discos) had requested the regulatory body to increase the price which would be charged in the bills for the months of July, August and September.
Meanwhile, the latest increase will be applicable to all consumers – except those falling in the lifeline category – across the country sans the region covered by the K-Electric.
The move can be described as just a tip of the iceberg amid an alarming inflation as Pakistan has clinched the $3 billion deal with the International Monetary Fund's (IMF) for sure but with some conditions that will certainly further burden the people who are already rattled by the record-breaking inflation.
Hence, the government is now expected to raise the electricity and gas tariffs before the IMF Executive Board’s meeting scheduled by July 12. Why? To meet the targets set by the world’s top lender and ensure that there is no hiccup as the IMF
The Executive Board will give final approval to the Stand-by Arrangement (SBA) between the two sides.
And this increase is nothing small – Rs3.50 hike in the per unit base price of electricity and 45 to 50 per cent hike in the gas tariff.
It will certainly be a painful measure for the masses, triggering a chain reaction when it comes to the inflation that is already touching the unbearable level for an overwhelming majority.
The latest SBA replaces the previous agreement known as Extended Fund Facility (EFF) which remained incomplete. It is nothing new as Pakistan has only once completed any agreement with the IMF which happened during the previous tenure of PML-N when Nawaz Sharif was the country’s prime minister.
Since the independence, Pakistan has reached the IMF 23 times – second only to Argentina in the world, which entered into a deal with the top financial institution on 24 occasions.
