ISLAMABAD – The government has formulated a plan to reduce electricity prices by up to Rs10 per unit in a major relief to masses head of summer season.
The plan, if approved, would provide massive relief to public in their electricity bills. It also aims at tackling the circular debt in the power sector.
Under the government’s plan, a reduction of Rs1.3 trillion in debt payments will create space that will be used to lower electricity prices.
Reports said a delegation of the International Monetary Fund (IMF) review mission will visit Pakistan at the beginning of next month when the plan will be shared with it.
It is recalled that IMF had previously rejected a plan to reduce taxes to lower electricity rates.
Earlier this month, the government announced a reduction in electricity tariffs by up to Rs1.23 per unit for consumers across the country.
According to the notification, the price has been reduced by Rs 1.22 per unit for consumers of state-owned distribution companies (DISCOs) and Rs 1.23 per unit for K-Electric consumers.
This reduction is part of the monthly fuel price adjustment (FCA)—applicable to December’s FCA for DISCOs and November’s FCA for K-Electric consumers.
The revised electricity rates will be reflected in February’s bills for all eligible consumers.
