ISLAMABAD: The inflation crisis may increase as the government might increase the power tariff per unit from Rs16 to Rs24. The new rates will apply from July 1. The development comes amid the conditions by International Monetary Fund (IMF) for the revival of the $6 billion bailout programme.
The IMF has demanded that subsidies on food items, fuel, and electricity be ended. Recently, petroleum products were increased by Rs30 per litre to fulfill IMF’s requirements. As per the sources, the increase in electricity prices will occur in phases by applying basic tariffs.
The hike in electricity prices has been demanded by 10 companies responsible for power distribution.
The decision to increase the prices will await the approval of Nepra and the federal government after foreseeing the subsidy targets.