Power tariff hiked by Rs1.68 per unit 

Islamabad: The federal government on Friday has approved an increase in the power tariff by Rs1.68 per unit, in a bid to remain in the International Monetary Fund (IMF) programme—reneging from a four-month-old stance to not further raise the rates. 

Reports quoting sources said, the federal cabinet approved the increase in power tariff through a circulation summary sent by the Ministry of Energy for approval.

According to the summary, the maximum per-unit electricity price is proposed at Rs24.33 per unit for domestic consumers.

Moreover, the power tariff decision will result in the reduction of electricity subsidies by Rs72 billion during the remaining period of this fiscal year.

The government seemed not to have an option but to accept the IMF’s conditions due to increasing external sector vulnerabilities.

The decision to increase power will impose an additional burden of over Rs 90 billion on consumers.

It is pertinent to mention here that, it is the second time in the past nine months that the Pakistan government has decided to increase the electricity prices. 

In February 2021, the government increased the electricity prices by Rs1.95 per unit on account of annual tariff adjustment.