The federal government has announced an increase of Rs1.95 per unit in the power tariff, reported 24NewsHD TV channel.

Addressing a joint press conference with Federal Minister for Planning Asad Umar and Special Assistant to PM on Energy Tabish Gohar, Federal Power Minister Omar Ayub criticized the previous government for the agreement it signed with IPPs which was based on corruption.

https://www.youtube.com/watch?v=cNNZeVnuYnk

Omar Ayub said under this agreement the government now has to pay Rs1455 billion to these power plants by 2023.

Omar Ayub said the 45 percent electricity is generated on imported fuel and the government inherited a deficit of Rs227billion. 

“If we put the burden on the people then it would have been Rs 202 billion as per the 61 paisas per unit.” Without having no choice the government increased per unit price by 23 percent in the cost of electricity.”

The Power Minister added, “The government has to pay Rs1455 billion in terms of capacity charges by 2023. The previous government made this agreement on corruption.”

He said industries have been given relief in the electricity prices and the government has provided Rs473 billion relief to various sectors amid the coronavirus pandemic. 

Asad Umar said the government is working for the improvement of the power system as the government inherited devastating power system.

Asad Umar said exports have been improved after 12 years there was a recorded increase in the production of major industries.

“In the first five months of the current financial year, the output of major industries increased by more than 7 percent. In the first six months of the fiscal year, 32 percent of the development budget has been utilized,” the Planning Minister informed the press. 

Asad Umar said the current account deficit is showing a head plus as revenues are increasing and expenses are being reduced. 

“The government is taking steps to reduce the price of electricity,” Tabish Gohar said.