Pakistan Government to Unveil New Relief Package for Low Electricity Consumers
The Pakistan government is set to announce a new relief package targeting small electricity consumers who use up to 200 units per month, according to ARY News. Prime Minister Shehbaz Sharif has instructed that there should be no increase in power tariffs for these consumers, rejecting the economic team’s proposal for a hike.
A subsidy will be provided to approximately 20 million protected users to ensure they do not face any electricity tariff increases in the upcoming fiscal year. The government aims to provide a total subsidy of Rs. 160 billion to protected consumers by the end of the current fiscal year, while other consumers may experience a tariff increase.
The International Monetary Fund (IMF) has urged Pakistan to further raise electricity prices, citing a burden of Rs 150 billion on the power sector. The IMF has requested an increase in the electricity tariff from Rs5 to Rs7 per unit in July, as the power sector’s circular debt is expected to reach Rs 2500 billion by the end of the financial year.
The Ministry of Energy is in discussions with the IMF officials to address these concerns and develop a plan for future tariff adjustments. Stay tuned for more updates!