ISLAMABAD: The electricity tariff, which was expected to increase by 30% from October 1, for residential consumers was increased by Rs5.89 per unit on those people who consume 201-300 units of electricity and by Rs 3.67 per unit on those who consume 301-700 units of electricity, Express News reported on Monday.
The increase in electricity tariff is one of the requirements of the loan deal the government struck with the IMF.
The electricity tariff for the agriculture sector was also earlier increased and the subsidy for the sector was cut. This was done as a requirement for the initial reimbursement of the loan given by the IMF.
There was also a sudden increase in electricity tariff on the textile industry.
The increase in electricity tariff is expected to affect economic growth as power consumption makes up a large part of the basket of items used to calculate inflation.
The central bank, by raising the interest rate has already taken a step which is expected to have a higher inflationary pressure in the coming months.