Staff Report
ISLAMABAD: The government has approved the withdrawal of the decision to increase charges for protected slabs of up to 200 units of power consumption, sources said on Tuesday.
According to sources, this development comes after Prime Minister Shehbaz Sharif secured approval from the federal cabinet for the circulation summary regarding this decision on an emergency basis, sources said.
Earlier, on July 4, The News reported that the federal cabinet had decided to implement a significant condition set by the International Monetary Fund (IMF) — to increase the electricity tariff. The federal cabinet had approved an increase in the basic tariff of electricity through a circulation summary.
The National Electric Power Regulatory Authority (Nepra) had forwarded the decision to the federal government to increase the basic tariff of electricity by an average of Rs5.72 per unit. Following Nepra’s approval, the federal government was expected to issue a notification to increase the basic tariff of electricity by July 10, as per IMF conditions. However, the government has decided to hold off on this increase for a specific period.
According to government sources, this relief will be provided for the remaining summer period of this year, from July to September 2024, for consumers with up to 200 units of monthly consumption.
To provide this relief, the federal government will grant a subsidy of about Rs50 billion. For lifeline customers using up to 50 units a month, the tariff will remain at Rs3.95 per unit. For lifeline users consuming between 51 to 100 units a month, the tariff will remain at Rs7.74 per unit during this period.
This decision aims to ease the financial burden on lower-consumption electricity users during the peak summer months, providing much-needed relief amidst rising energy costs.
