Pakistan approves power tariff hike to pacify IMF

ISLAMABAD: Moving swiftly to meet prior actions of the IMF programme, the Economic Coordination Committee (ECC) of the Pakistan cabinet approved imposition of a special financing surcharge of 3.39 PKR per unit in average power tariff, in addition to quarterly tariff adjustments of up to 3.21 PKR per unit for a year and recovery of pending fuel cost adjustments of up to 4 PKR per unit for about three months.

While the financing surcharge would remain a regular part of average base national tariff, the two other tariff adjustments would sometimes be overlapping simultaneously and fluctuating at other times, reports Dawn news.

In addition, another surcharge at the rate of 1 PKR per unit has been approved in advance for the next fiscal year (FY24), on top of an existing and continuing financing surcharge of 43 paise per unit to cover power sector debt servicing.