IMF conditions: Govt raises electricity tariff for export sector
March 2, 2023 06:51 AM
Following the instructions of the International Monetary Fund (IMF), the government has increased the electricity tariff for the export sector by Rs 12.13 per unit, reported 24NewsHD TV channel.
According to a notification issued on Wednesday, the government has ended the subsidy on power for the export industry including textiles. The power supply to the export industry at Rs 19.99 per unit has been withdrawn and the notification will be effective from March 1, 2023.
The cost of electricity has been increased by the power division for the export sector in order to eliminate the circular debt, the notification said.
The federal cabinet has already given its approval to the revised circular debt plan.
The power division has written a letter to K-electric and all the power distributing companies for the implementation of this decision.
The federal government has increased the cost of electricity for farmers by Rs 3.60 per unit too. The agricultural sector will get electricity at Rs 16.60 per unit instead of Rs 13, the notification added.
Rs 3.60 per unit subsidy on electricity has been withdrawn.
The decision to withdraw subsidy on electricity for exporters and farmers will generate Rs 51 billion and Rs 14 billion respectively till June.
It is to be noted that the federal government agreed to raise prices of electricity and gas as Islamabad and IMF reached closer to the revival of $7 billion Extended Fund Facility (EFF) stalled for months.
The Fund and Pakistan had moved closer to the revival of their loan package as Islamabad agreed to several conditions including increasing energy prices and improving tax collection, as demanded by the IMF.