Details indicate that PM Shehbaz Sharif has ordered that electricity rates for those who use 200 units per month not be raised.
The suggestion of the economic team to raise power tariffs for clients who are protected has reportedly been rejected by Shehbaz Sharif, according to sources within the Prime Minister’s Office.
Instead, these customers will receive a subsidy, guaranteeing that in the forthcoming fiscal year 2024–2025, over 20 million protected users won’t see an increase in their electricity rates.
The officials noted that other consumers’ electricity tariffs will increase and that the government is committed to provide protected users a total subsidy of Rs. 160 billion by the conclusion of the current fiscal year.
Based on increased load on the power industry of Rs 150 billion, the International Monetary Fund (IMF) has ordered Pakistan to raise energy tariffs even higher, according to sources.
There are rumors that the Ministry of Energy has been instructed by the IMF to raise the price of energy in July from Rs 5 to Rs 7.
The circular debt of the power industry is predicted to exceed Rs 2500 billion by the conclusion of the current financial year, a concern voiced by the IMF over the failure to meet the required benchmarks. Sources claimed that the circular debt has gotten out of hand for the Ministry of Energy.
The Ministry of Energy has also been asked by the IMF to submit a plan that will raise gas and electricity prices in the upcoming fiscal year. The Ministry of Energy representatives and the mission are currently in discussions to further explore this issue.
