To continue the International Monetary Fund (IMF) program, the federal government may have to raise the electricity tariff twice before the end of the year.
In this regard, the Economic Coordination Committee (ECC) of the cabinet is set to meet on Wednesday to discuss the exact amounts and schedule for tariff hikes, with a decision expected to be finalized by the end of the month.
ALSO READ
Pakistani Freelancers Earned $150 Million During FY 2019-20
According to sources within Power Division, the average price of electricity will be increased by more Rs. 3 this year for all power companies including K-Electric.
A per unit power tariff increase of more than Rs. 1.5 will come into effect on 1 July while a similar hike will come into effect on 1 October. Rs. 220 billion will be generated through these two electricity tariff adjustments.
ALSO READ
RTO Faisalabad Uncovers Huge Scam of Fake and Flying Invoices
Besides, the federal government will divert Rs. 130 billion worth of additional funds from the exchequer to the power sector in subsidy payment, which according to the 2020-21 budget is about Rs. 145 billion.
The subsidy payment is not only deferred but is significantly under-budgeted. It will only compound cash flow problems of the power companies and increase the circular debt of the power sector, which stands at Rs. 2.303 trillion.
عمران خان کو اب تو خود کشی کر ہی لینی چائیے۔