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Sunday, March 3, 2024

The government agrees to impose additional electricity surcharges in order to satisfy the IMF’s request.

Date:

  • A 335 billion rupee surcharge for electricity users has been approved by the ECC.
  • Every three months, power rates would increase by Rs 1.55.
  • Additionally, a standard tariff for K-Electric customers is under consideration.

A further barrier to a staff-level agreement was removed on Wednesday when the Pakistani government acceded to the International Monetary Fund’s (IMF) demand and imposed a permanent electricity tariff of Rs3.23 per unit to recover Rs335 billion from consumers.

Under peer pressure from the International Monetary Fund, the Economic Coordination Committee (ECC) of the cabinet, presided over by Finance Minister Ishaq Dar, approved the implementation of an additional surcharge of Rs. 3.39/unit for four months (total surcharge became Rs. 3.82/unit) (IMF).

According to the details, it was approved in the ECC meeting to charge electricity consumers a surcharge totaling Rs 335 billion during the upcoming fiscal year.

The implementation of a uniform tariff for K-Electric customers was also approved at the ECC meeting. Customers of K-Electric will pay an additional fee ranging from Rs. 1 55 to Rs. 4 45 per unit.

Information reveals that a consumer of electricity with 100 units will pay Rs 1.4 per unit, a customer with 700 units will pay Rs 3.2, and industrial and temporary residential customers will pay Rs 4.45.

The specifics state that the surcharge earnings would be applied to the government’s outstanding debt owed by the power sector. It will be applicable to all national electricity users.

According to additional ECC sources, it has also been decided to raise the power tariff by Rs 1.55 on a quarterly basis.

A further surcharge of Rs3.82 per unit for a period of four months, from March to June 2023, was approved by the cabinet last month. In order to recover Rs126 billion, it also approved a Rs1.43 per unit tax for the upcoming fiscal year, which the IMF rejected.

The Electricity Division asked that the fee be “enhanced to Rs335 billion for FY 2023-24 and onwards for the consumers” in response to the IMF’s objections.

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