In Pakistan, electricity to become costlier as Imran Khan govt increases tariff

Prime Minister Imran Khan-led Pakistani government hiked the base power tariff by Rs 1.39 per unit on Friday to meet the International Monetary Fund's (IMF) demand to remain in its programme. According to The News International, the increased rate will take effect from November and will last till the end of the fiscal year in June 2022. The tariff has been raised after the government withdrew a Rs 72 billion subsidy that was offered to various types of power consumers. The government's subsidy requirement has been lowered from Rs 240 billion to Rs 168 billion, reported the outlet. 

Meanwhile, economists in the country are concerned about the decision, predicting substantial inflation in the country because commodities' prices, such as crude, petroleum products, and food, are already rising in the international market. The government had previously stated that it would not raise tariffs. However, now it has left with no choice but to boost the power tariff after ongoing negotiations with the IMF to resume the USD 6 billion halted programme, according to The News International. 

In a joint press conference with State Minister for Information and Broadcasting Farrukh Habib, Federal Minister for Energy Hammad Azhar said the hike of Rs 1.39/unit was imposed in light of the rising power circular debt. "We currently have enough electrical generation capacity, therefore, we aim to raise demand. Last year, we offered an industrial package, which proved to be a success, as demand increased by 15%" Azhar was quoted as saying by The News International. The minister further went on to say that the government noticed a 6-7% spike in electricity demand since the industrial sector's peak hours were removed. 

Balochistan faces chronic electric shortages

It should be mentioned here that despite many claims by Pakistan Prime Minister Imran Khan, just 36% of Balochistan is electrified, with the remaining 64% experiencing chronic darkness. According to a document provided in Pakistan's National Assembly last month, previous regimes electrified more villages than the Pakistan Tehreek-e-Insaf (PTI). Only 1,064 villages were electrified by the Imran Khan-led administration in 2018-19, 819 villages in 2019-20, and as many as 1,023 villages in 2020-2021. Whereas, before the PTI government, 2,459 villages were electrified in 2017-18. Pakistan's Ministry of Power has also acknowledged that the majority of Balochistan is without electricity.

(With ANI inputs)

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