The government has accelerated the implementation of conditions for the restoration of the IMF program.
According to the sources, the federal cabinet has approved the plan to increase electricity prices and end subsidies.
According to the sources, the cabinet has approved the revised circular debt management plan through circular summary.
Under the plan, electricity will cost up to Rs.7 per unit for domestic consumers till June. From March 2023, subsidy on electricity for the export sector and farmers will end.
For the export sector, subsidy of Rs.12-13 paise per unit on electricity will be returned.
About 250 billion rupees will be recovered from electricity consumers by June 2023. Under the plan, there will be a surcharge of Rs.3.39 paise per unit. The cost of electricity will be increased due to quarterly adjustments.
Rs.73 billion will be obtained by increasing the quarterly adjustments till June. In the quarterly adjustment, electricity will be expensive up to Rs.4 and 46 paise this month.
The average increase in tariff in February will be Rs.3.21 paise per unit. In March, the price of electricity will be increased by 69 paisa in the quarterly adjustment. In June, the price of electricity will be increased by one rupee and 64 paisa in the quarterly adjustment.
Electricity will cost Rs.1.98 paise in the quarterly adjustment in September. By June, Rs.65 billion will be received by end of subsidy for export sector, farmers. Rs.51 billion will be obtained by ending subsidy on electricity for exporters.
Rs.14 billion will be obtained by ending the subsidy on electricity under the Kisan package.
It is noteworthy that the federal government has already increased the basic electricity tariff by seven rupees per unit during the current financial year.
Now it will be increased by another Rs.7 per unit. According to sources, the government has decided to withdraw the subsidy of Rs.3.60 per unit given to farmers. The tariff of farmers will increase from Rs.13 to Rs.16 and 60 paise after the subsidy is returned.
