Pakistan Economic Crisis: Pakistan’s economy is badly stuck in crisis. There is a huge shortage of currency reserves in the country. Common people are in bad condition due to wild inflation. People are facing difficulties in getting even the bread of June 2. Meanwhile, the conditions for taking loans from the IMF in the country have had a negative impact. Shahbaz Sharif’s government has given a shock to the electricity consumers. The hike in electricity rates has been approved.
Re 1 per unit surcharge has been imposed on large electricity consumers in Pakistan. Pakistan’s Finance Minister Ishaq Dar chaired the ECC meeting on Friday (February 10) after the IMF team left.
Approval for increase in electricity rates
The Economic Coordination Committee (ECC) of the Cabinet approved an additional surcharge of Re 1 per unit for the financial year 2023-24 to implement one of the preconditions of the International Monetary Fund (IMF). Surcharge has been approved for the recovery of Rs 76 billion in the liabilities of the power sector.
Subsidy back in electricity duty
The Economic Coordination Committee (ECC) of the Cabinet in Pakistan on Friday also approved the withdrawal of subsidy in electricity duty for the Export Oriented Sector and Farmers Package. Finance Minister Ishaq Dar chaired the ECC meeting, which discussed revenue and fiscal measures to meet the demand of the Washington-based lender, according to a statement issued after the ECC meeting.
IMF team left without signing the agreement
The talks concluded with the 10-day IMF mission in Islamabad on Thursday (February 9). Energy sector reforms and controlling circular debt were on top of the agenda during the talks with the IMF mission. The IMF team had left Islamabad without signing the agreement and asked Pakistan to take corrective measures in this regard. The ECC meeting was held to review the situation and take necessary steps.
electricity tariff in pakistan
The government approved a Modified Circular Debt Management Plan (CDMP), including quarterly tariff adjustments, fuel price adjustments and imposition of a surcharge of Re 1 per unit on large power consumers, where the tariff will rise to around Rs 7-8 per unit. Consumer Base Tariff will be increased from Rs 15.28 per unit in June 2022 to Rs 23.39 per unit by June 2023.
Sources said that the IMF had asked the government to increase the base tariff by Rs 4.06 per unit, but the government did not approve anything in this regard under the revised CDMP.
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