Govt unveils plan to reduce power tariff by Rs 8-10 per unit

(Web Desk): The federal government has introduced a new plan to cut the basic power tariff by Rs 8 to Rs 10 per unit.

This move is aimed at tackling the ongoing issue of circular debt, which will be reduced by lowering the amount of debt. The plan will save Rs 130 billion in debt repayments, which will help create financial space and allow for lower electricity prices.

The reduction is also expected to help ease the ongoing financial losses in the power sector.

Sources say that government plans to present the proposal to the IMF during its review mission visit next month. However, it’s important to note that the IMF had earlier rejected a suggestion to cut taxes in order to reduce electricity prices.

Under the new proposal, the power tariff will be reduced by Rs 8 to 10 per unit, helping to address the financial challenges in the electricity sector.