Massive hike in power tariff on cards in July

The hike in power tariff is on cards after Pakistan informed the International Monetary Fund (IMF) that yearly adjustment might come into effect in July.

The adjustment might result in hike per unit cost in the range of Rs5 to Rs7.

The development comes after the international loan lander rejected government’s proposal to reduce power tariff for industries.

According to Express Tribune, that the energy ministry officials informed the IMF that based on the petitions by the power distribution companies, electricity tariffs on account of annual base tariff adjustment might go up by Rs5 to Rs7 per unit.

This may translate into about 20% increase on the basis of the existing base tariff.

The IMF asked the ministry to share more details about the assumptions used to work out the annual base tariff increase.

They said that it appeared that the IMF was skeptical about the quantum of increase, which might be less than what the Power Division was expecting.

The annual base prices are being increased every year to make the power sector financially viable.