NEPRA likely to hike power tariff by Rs4.96 per unit

Islamabad: The National Electric Power Regulatory Authority (NEPRA) on Friday is likely to increase the electricity base tariff for the ongoing financial year 2023-24 in response to the International Monetary Fund’s (IMF) disbursement of $1.2 billion under the recently approved $3 billion bailout deal.

According to details, the regulator will increase the base rate for energy by Rs4.96 per unit. They add that the federal cabinet would make the ultimate decision about the hike in power tariff. "The power regulatory authority will forward its decision to federal cabinet today," they state.

NEPRA already established three options for a new basic tariff: below Rs. 8 per unit, below Rs. 7 per unit, and below Rs. 6 per unit. It had already decided on a basic rate hike of up to Rs. 5 per unit. ‘Govt likely to present mini-budget’

The International Monetary Fund (IMF) has requested a plan for 'improved tax' collection from the real estate and agricultural sectors, therefore Pakistan is expected to present a mini-budget.

According to sources with knowledge of the situation, the IMF is pressuring Pakistan to improve tax collection from the real estate and agricultural sectors after boosting the tax ratio.

Further in preparation for the second review of the $3 billion Stand-By-Arrangement (SBA), the foreign lender has requested a strategy for improved tax collection.

According to the sources, the next administration will decide whether to tax the real estate and agricultural industries, and if the Federal Board of Revenue (FBR) accepts the IMF proposal, a mini-budget is likely to be implemented IMF bailout

The first installment of $1.2 billion for the SBA program from the International Monetary Fund was given to Pakistan on Thursday.

Dar stated that the remaining $1.8 will be distributed in two installments after two evaluations.

After signing the staff-level agreement last month, the International Monetary Fund (IMF) recently authorized a $3 billion loan for Pakistan.