Government approves Rs1.68 per unit increase in power tariff: sources

• Sources inform Geo News that the cabinet has approved an increase in power tariff through circulation summary.
• The summary was sent by the Ministry of Energy for approval.
• Earlier, NEPRA had increased the power tariff by Rs1.95 per unit on account of FCA for August 2021.

ISLAMABAD: The federal government on Friday has approved an increase in the power tariff by Rs1.68 per unit, sources informed Geo News.

Sources added that the cabinet has approved the increase in power tariff through a circulation summary.

Considering the summary sent by the Ministry of Energy for approval, the government increased electricity prices by Rs1.68 per unit.

Speaking to Geo.tv, an analyst said that in a bid to remain in the International Monetary Fund (IMF) programme, the government had sought the federal cabinet’s approval to increase electricity tariff by Rs1.68 per unit.

He added that according to the summary, the maximum per-unit electricity price is proposed at Rs24.33 per unit for domestic consumers.

Citing the summary circulated among the cabinet members, the analyst said that the power tariff decision will result in the reduction of electricity subsidies by Rs72 billion during the remaining period of this fiscal year. 

Earlier, the National Electric Power Regulatory Authority (NEPRA) had increased the power tariff by Rs1.95 per unit on account of the fuel cost adjustment (FCA) for August 2021.

According to a notification issued in this regard, the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs2.7 per unit.

It was clarified that the FCA for August 2021 will be charged with the bill of October 2021, which will be paid by all consumer categories of distribution companies, except for lifeline and K-Electric consumers.

'Mini budget'

Leader of the Opposition in the National Assembly Shahbaz Sharif likened the increase in power tariff to a "mini budget".

"In the budget speech, what I said proved to be true and the government proved to be false. I had said that the government will bring a mini budget and today this has come true," Shahbaz said.

"This proves that the government deceived the people when it comes to the budget," he added.

The Opposition leader said that if this government continues to run, the economy will not.

"If this government is allowed to continue, the poor man's means of livelihood, his business, will no longer flourish," he said.

Shahbaz said that imposing 17% sales tax on tax-exempt items is "terrorism against the people and the economy", as are rising prices of petrol and electricity.

Inflation, unemployment and economic collapse are "already at an all-time high", he said.

"Imran Niazi is sacrificing the economy and the nation on the altar of the IMF," he remarked.

The government following the terms of the IMF has "not taken care of the interests of the people", he lamented, adding that "Imran Niazi himself is taking measures which lead to an increase in prices".

Shahbaz went on to say that "Imran Niazi complains that the people do not understand why prices are rising" but the nation "understands very well what is happening to them, who is perpetrating this oppression".

"The problem is not a supposed lack of understanding by the nation but the corruption, lies and historical incompetence of the rulers," he said.

"Pakistan and the nation are being severely punished for the incompetence and corruption of the rulers," he added.

PDM rejects price hike

The Opposition's Pakistan Democratic Movement (PDM) also rejected the government's summary of petrol price hike and the increase in power tariff.

"Billions of rupees have been looted from people's pockets due to increase in electricity prices," JUI-F's Hafiz Hamdullah said.

"The false government and its catastrophic rule has increased petrol prices by 40% in 3 years," he said.

"Imran Khan promised to give relief to the people in the budget. Where is that relief?" Hamdullah asked.

He alleged the goal of the PTI government is not the eradication of poverty, rather it is the "elimination of the poor"..

Hamdullah said the PDM is out on the streets to "save the country" and the nation from this "torment".

He said that a "historic" gathering will be held in Faisalabad tomorrow against the "incompetent and illegitimate rulers".

"The rally will be attended by the leadership of all parties including PML-N Vice President Maryam Nawaz," he added.