Electricity tariff to rise two per cent

LAHORE: The government has decided to raise the electricity tariff by two per cent per annum on the directives of IMF.

This decision was taken based on repeated IMF directives calling on the government to introduce reforms in the power sector. The government has decided to gradually call off the subsidy on electricity thus shift the burden to the general public.

The enhancement of  electricity tariffs by two per cent each year is an attempt to comply with IMF conditions regarding the release of the $11.3 billion loan to Pakistan.

The last IMF review was completed in May and the review for the release of the sixth tranche has been delayed since August over several issues, such as an increase in power tariffs and implementation of reformed general sales tax (RGST).

A notification from the Ministry of Water and Power in this regard is likely to be issued on November 1.