The caretaker federal government sees another Rs. 4.37 per unit hike in power tariff till December 2023 and has ruled out any relief in electricity bills for consumers without violating the IMF program.

Well-informed sources from the Ministry of Finance told ProPakistani that a reduction in taxation on electricity bills isn’t possible without taking the International Monetary Fund into confidence, which on its own seems like an impossible task.

Sources said a reduction in any form of taxation on electricity bills would be a violation of the $3 billion standby arrangement (SBA) that the previous government made with the crisis lender in July 2023.

They emphasized that throughout the duration of the SBA, it is imperative to take the IMF into confidence on any decision pertaining to giving relief on electricity rates. It is noteworthy that this policy is consistent with the new Circular Debt Management Plan shared with the lender, which also sees an increase in quarterly adjustments during the collection period of September- December 2023.

As per the terms and conditions of the bailout agreement, the federal government is obligated to collect quarterly adjustments and other taxes that prevent the regulator from giving any relief to the general public.

Sources said the quarterly adjustments on electricity bills will get more expensive by up to Rs. 4.37 per unit till December 2023. Pertinently, the goal of this move is to generate an extra Rs. 122 billion from consumers during this period. Also, this move is part of the government’s efforts to address the energy sector’s financial issues.

Source: Pro Pakistani