The International Monetary Fund (IMF) has strongly opposed the federal government’s new proposal to delay increasing electricity bills of consumers using 201-400 units per month.
Prime Minister Shehbaz Sharif recently suggested postponing the Rs. 7.12 per unit price hike for three months and ordered the Ministry of Energy and the Ministry of Finance to find a solution and secure IMF approval, reported Express Tribune.
The IMF has opposed delaying the price hike for middle-income consumers and warned that it would conflict with energy sector targets related to circular debt reduction and annual base tariffs.
Approximately 2.8 million residential consumers fall into the 201 to 400 units category, paying significantly more than the average price of Rs. 33 per unit after the recent increase. The government’s decision to increase prices by Rs. 7.12 per unit affects 2.2 million consumers using 201 to 300 units, with a new rate of Rs. 34.26 per unit. For those using 301 to 400 units, the new rate is Rs. 39.15 per unit, excluding taxes and surcharges.
The government’s previous decision to defer the increase for up to 200 units benefited a large majority but only for a limited period.
Due to policy decisions by the IMF, the World Bank, and successive governments, electricity prices have become unaffordable, averaging Rs. 70 per unit after the recent hike. The IMF had previously rejected Pakistan’s request to spread out August’s electricity bills over six months, reflecting its firm stance against temporary relief measures.
The government is also considering ending the provision of free electricity to government officials, bureaucrats, judges, and parliamentarians as part of an emergency plan. The plan may also include ending free petrol and reducing Maximum Demand Indicator (MDI) charges for factories.
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Why Not IMF says for Ending Free Electricity and free facilitiesbto Govt., servants, Bureucrats, Parliament Members etc, alto save the amount and give relief to end consumers, by reducing rates and excluding different Taxes, already included in bill. As already agitation is going on in Country, against inflation, due to increase in Electricity Charges and Petrol/Diesel prices. The inflation rate is once again going upward, due to rise in daily use commodity items, because of further taxes on daily use items by the people, as poor and Middle Class are suffering. The Govt., should think of its people. It seems all due to IPP’s wrong Past Agreements, and now we all are paying and ruined our progress and success. Those who, signed and beneficeries of such Agreements, are responsible, must be accounted for.
Wow hiking prices instead of negotiating with Power discos. Then get ready for inflation and extreme protests . People don’t have any income anymore
The issue is not increasing the electricity price govt main concern is not to pass the single paisa burden on their colleagues and keep the ipps perks continue as long as they could.
IPPs are owned by people in power. regular payments in $$ will continue
Thank you I have just been searching for information approximately this topic for a while and yours is the best I have found out so far However what in regards to the bottom line Are you certain concerning the supply