PIAF rejects IMF loan revival on harsh term of power tariff hike
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The Pakistan Industrial and Traders Association Front (PIAF) has rejected the Rs3.50 per unit tariff increase by distribution companies (Discos) as the government is trying to revive the stalled $6 billion IMF loan programme.
The National Electric Power Regulatory Authority (NEPRA) has allowed an increase of Rs1.53 per unit for Dec 2020 under the monthly fuel price adjustment formula. A Rs1.95 per unit increase has already been approved as base tariff for formal resumption of the suspended IMF programme.
PIAF Chairman Mian Nauman Kabir lamented that the National Electric Power Regulatory Authority has notified an increase of Rs1.53 per unit in Discos tariff for Dec 2020 while a formal uniform increase of Rs1.95 per unit in base tariff of Discos is also being notified. He said the cumulative impact of Rs3.48 per unit increase in tariff will add Rs11.6 billion to the financial burden and will be charged across the board. It will lead the economy to a point of no return due to interference of the International Monetary Fund in the Pakistani economy, he said.
In a joint statement with PIAF Senior Vice Chairman Nasir Hameed and Vice Chairman Javed Siddiqi, Mian Nauman Kabir stated that frequent increases in energy rates at IMF’s behest would make Pakistani products uncompetitive in the international market. He said the industry is the main victim of this IMF interference, as donors’ involvement in Pakistan’s economic matters and dictation to policymakers for harsh measures would add to economic miseries of the country.