In another move to meet the conditions set by Washington-based International Monetary Fund (IMF), the federal cabinet has approved a whopping increase in electricity base tariff – a move that will further worsen the existing cost of living crisis faced an overwhelming majority and push the cost of doing business towards an unsustainable level.
The federal cabinet, sources say, endorsed the tariff hike proposed by the National Electric Power Regulatory Authority (Nepra), which means the power consumers will pay additional Rs5.72 per unit on average through their monthly bills.
Hence, the average electricity base price has now been fixed at Rs35.50 against the previous level of Rs29.78 per unit, which will be applicable with effect from July 1.
Earlier on Wednesday, Minister of State for Finance, Revenue and Power Ali Pervaiz Malik had told Reuters that Pakistan was looking to clinch a staff-level agreement on an IMF bailout of more than $6 billion this month after addressing all of the lender’s requirements in its annual budget.
“We hope to culminate this (IMF) process in the next three to four weeks,” he said, while also admitting the budget prepared by Shehbaz Sharif-led coalition government was “tough” and “unpopular”.