Business
Power tariff to go up by Rs2.8 per unit
The hike would put an additional burden of Rs207 billion on the consumers.
Islamabad: The Pakistan Tehreek-e-Insaf (PTI) government has decided to further increase electricity prices by Rs2.8 per unit, in a bid to collect an additional Rs292 billion from inflation-hit consumers—with an aim to bring the vicious circular debt down.
According to details, the officials have geared up preparations to hike the prices in two phases from February to July this year on account of annual tariff adjustments.
Reports quoting sources said that the government intended to take the tariff to Rs18.9 per unit by June this year—with a proposal to increase the rate to Rs2.17 paisa in July.
The hike would put an additional burden of Rs207 billion on the consumers.
The decision was taken as per conditions of the International Monetary Fund (IMF) for the collection of an additional Rs292 billion from consumers between February 2022 and June 2023 to push the circular debt down— that remains high despite massively increasing inflation.
On Thursday (February 10), a cabinet committee— headed by Planning and Development Minister Asad Umar— approved the revised Circular Debt Management Plan (July 2021-June 2023).