After a very delayed increase of Rs. 30 per liter of petrol product prices, the government will now increase basic electricity price by Rs. 7 per unit in stages from July 1, 2022. In addition, the government has decided to increase the tariff on electricity by Rs. 7 per unit to meet the needs of the International Monetary Fund (IMF) and repatriate the $ 6 billion program needed by the country to boost the economy.
Reduction of Rs.5 per unit for the electricity price:
According to the Sources in the Ministry of Finance and Energy, the govt has assured the IMF that it will spend Rs. 5 per unit of subsidy announced by the previous govt on February 28 and a four-month reduction in fuel prices. Electricity tariffs will increase over the next four months after the budget is announced. However, Sources in the Department of Energy also informed that an initial increase of Rs would be. 3.75 per unit. Moreover, the former Pakistani government, Tehreek-e-Insaf (PTI), has announced a reduction of Rs. 5 per unit of the price of electricity which will expire on June 30.
Draft summary:
The incumbent govt is preparing a draft summary in line with IMF conditions to increase the cost of electricity units by Rs quickly. 2.17 while rising by Rs. 0.63 per unit of basic price is also pending from the previous government term. An average load of Rs. Three hundred fifty billion will shifted to electricity consumers with this increase. Furthermore, the sources also revealed that one basic power unit costs an increase of up to Rs. 0.95 should forwarded to consumers after government approval.
Privatization of DISCOs planned:
The amount will increase by quarterly adjustments, and the base rate as the IMF has asked for a steady increase in electricity sector debt, which has grown to Rs. 2,600 billion. If the circular debt of gas is added to that of the energy sector, the sum of the round debt will exceed Rs. 4.1 trillion. Furthermore, the IMF has informed the Minister of Finance, Miftah Ismail, and the Pakistani delegation that companies distributing energy sector DISCOs should be immediately traded through a self-made program and that DISCOs loss should be given to their provinces. , according to sources. This will reduce the excess burden of DISCOs causing losses and reduce all government debt.
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