The federal cabinet has approved a significant increase in the basic tariff of electricity as part of meeting the International Monetary Fund (IMF) conditions. This decision was made through a circulation summary.
Key Points of the Tariff Hike:
- IMF Condition Compliance:
- The federal cabinet has agreed to raise the basic electricity tariff by an average of Rs5.72 per unit, a move recommended by the National Electric Power Regulatory Authority (NEPRA).
- Process and Implementation:
- The decision has been forwarded to NEPRA for uniform tariff approval.
- After NEPRA’s approval, the federal government will issue a notification to implement the new tariff.
- Financial Impact:
- The increase will add an estimated Rs600 billion burden on electricity consumers.
- The new tariff will be effective from July 1, 2024, for the financial year 2024-25.
- The average basic electricity tariff will rise from the current Rs29.78 to Rs35.50 per unit.
- Historical Context:
- In the last financial year ending June 30, the basic electricity tariff was increased by Rs7.50 per unit.
- For the financial year 2022-23, the tariff was raised by Rs7.91 per unit, implemented in three phases.
This decision underscores the government’s efforts to comply with IMF conditions while addressing the ongoing financial challenges. The tariff hike aims to ensure fiscal stability but will have a significant impact on electricity consumers across the country.
To Keep Updated Visit & Follow our Facebook Page Or Our Website
