Electricity tariff not to be increased


Express April 17, 2010

ISLAMABAD: Government of Pakistan, World Bank and Asian Development Bank  scrapped the proposal of increasing the electricity tariff by six percent.

A foreign ministry official told Express 24-7 that World Bank and ADB agreed to remove the condition of increasing electricity prices in the country. Earlier the Government of Pakistan was asked to increase the electricity tariff by six per cent from April 1.

Sources said the increase in electricity tariff was never proposed by the IMF. According to them, the IMF was only monitoring compliance of the condition and would not have an issue if the World Bank and ADB agree to let go.

The World Bank, however, stressed on the importance of implementation of a workable energy plan for the economy.

COMMENTS (1)

Meekal Ahmed | 11 years ago | Reply If this is a 'performance criteria' or a 'structural benchmark' under the IMF program then it will require a waiver for non-observance from the IMF's Executive Board. If this 'no-pass-through' is absorbed in the budget as a subsidy, it needs to be explained how this subsidy will be 'financed'. We should all be interested in finding out how this subsidy will be accommodated. By a cut in development spending?
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