The federal government is likely to raise the power tariff in the range of Rs. 4-6 per unit today in response to the International Monetary Fund’s (IMF) disbursement of $1.2 billion under the recently approved $3 billion bailout program.
The IMF wants Pakistan to increase the power tariff, but it has been intimidated that the National Electric Power Regulatory Authority (NEPRA) and Finance Ministry (MoF) have reached an agreement on the hike in such a way that it is based on realistic figures of dollar value, inflation, GDP growth, and growth in the sale of electricity in FY2023-24, reported a national daily.
According to the report, both NEPRA and MoF have almost finalized the draft to increase the base tariff today. He said the energy regulator will further adjust the draft and notify the revised tariff rates later today.
On why NEPRA did not use the dollar’s value of Rs. 290 as the benchmark for the federal budget, the official stated that since the IMF consented to the stand-by arrangement, the situation has changed and the dollar has fallen to Rs. 277, which may help reduce inflation in FY24.
Previously, NEPRA had developed three possibilities for a new base tariff: below Rs. 8 per unit, below Rs. 7 per unit, and below Rs. 6 per unit. Earlier, it determined the base tariff increase of up to Rs. 5 per unit.
Under fresh conditions, both NEPRA and MoF have mutually agreed to increase the base tariff up to Rs. 6 per unit, with the announcement expected sometime later today.
Another gift to already struggling citizens just because our so called leaders and politicians need more to feed themselves and handlers.