The federal government has decided to increase the basic electricity tariff by another Rs 2 per unit, a move that is being taken to implement the loan agreement with the IMF. An increase of 60 paisa per unit in the tariff of electricity distribution companies is final, apart from this, half of the subsidy of Rs. In addition, the quarterly tariff adjustment will increase next year when the new power generation units become operational.
According to the proposed draft circular debt management plan submitted by the government to the IMF, World Bank and Asian Development Bank, the average deficit of electricity distribution companies will be reduced by only 0.5% per annum. During FY 23-2022, the deficit will be reduced from 16.32% to 15.70%. In addition, the collection of dues has been assured to be increased from 95% to 98%. The CDMP's draft will be finalized after the IMF Board approves the Sixth Review Agreement on the Extended Fund Facility (EFF) program.
The government has already removed domestic consumers using more than 300 units per month from the subsidy plan, while consumers using more than 101 units of electricity per month will also be technically excluded from the subsidy.
An agreement to restore the Extended Fund Facility (EFF) was announced between Pakistan and the International Monetary Fund (IMF) yesterday. He stressed that better work should be done to provide subsidy only to the deserving sections in this sector.
It should be noted that this month, at the request of the government, NEPRA has increased the basic electricity prices by Rs 1.68 per unit. After which the price of one unit of electricity has gone up to 24 rupees 33 paise.
