ISLAMABAD – The federal cabinet has approved to increase electricity prices aimed at unlocking much-needed funds from International Monetary Fund (IMF), which may increase power prices by Rs7.91 per unit in four quarterly adjustments.
The sharif-led government takes swift measures to implement prerequisites tabled by US based lender. The cabinet also approved a revised circular debt management plan through circulation.
Under the plan, the previously given subsidy on power for the export sector and farmers will be ended to garner nearly Rs250 billion. The average hike in power tariff in February will be Rs3.21 per unit, 69 paisas in March, Rs1.64 in June, and then nearly Rs2 per unit in the last phase.
Pakistan mulled new stringent measures as the cash-strapped nation failed to woo the IMF team over fiscal measures.
Pakistan to impose Rs170b taxes through mini-budget to get IMF deal: Ishaq Dar
The federal government has amplified pushing extreme conditions tabled by IMF to revive the $7 billion Extended Fund Facility (EFF) stalled for months as the country’s foreign exchange reserves plunged to less than $3 billion.
