ECC Postponed the Decision To Produce Hike in Power Tariff By Rs 3.75
On Monday, the Economic Coordination Committee (ECC) postponed the decision to impose an increase in electricity tax. The hike in power tariff has worried many citizens across the nation.
Asad Umar, who is the Finance Minister of Pakistan, chaired an ECC meeting on Monday (today) to focus on a one-point agenda involving the increase in electricity prices.
According to sources, the ECC members deferred the decision and postponed the meeting to Wednesday (October 24), to talk about approval for the increase in power tariffs.
“The government wants to increase the power tariff in two phases. The Ministry of Power has sought permission from National Electric Power Regulatory Authority (NEPRA) regarding increasing the power tariff by Rs3.74/unit in two phases, however, the government is facing difficulty in increasing the price after NEPRA’s new tariff,” the sources added.
“NEPRA has upheld that the phase-wise rise will further increase the government’s economic problems,” they futher added.
Earlier this month, the International Monetary Fund (IMF) team visited Pakistan and advised Pakistan to further hike the power and gas tariffs to tackle the situation in the country.
A designated IMF team which was led by Harald Finger, took a visit to Islamabad from September 27 to October 4 to discuss Pakistan’s economic crisis and exchange ideas on how to stabilize the country’s economy. After the visit, a “welcomed the policy measures implemented since last December” which involved 18 percent depreciation of the Pakistani rupee, interest rate increases of 275 bps, fiscal consolidation through the budget supplement introduced by the minister of finance, a major increase in gas taxes, the suggested increase in electricity tariffs.
“These measures are necessary steps that go in the right direction,” the IMF mission head said.