Govt all set to increase power rate by Rs7.91 per unit on condition of IMF

ISLAMABAD (92 News) - The government is all set to increase the power rates on the condition of the International Monetary Fund (IMF).

According to the official documents available with 92 News, the power price will be raised by Rs7.91 per unit and the increase will be made on quarterly basis. An increase of Rs0.69 per unit will be made from March to May, Rs1.64 from June to August and Rs1.98 per unit from September to November.

The subsidy under the Kissan Package will have to be ended from March 1. As a result, an amount of Rs65 billion will be saved.

Moreover, an amount of Rs35 billion will be received from the consumers under the head of the fuel adjustment charges. The IMF has set a target of recoveries from the distribution companies (DISCOs) at 90.4 percent.

The IMF has also imposed a condition of decreasing technical losses by Rs16.2 billion. As per documents, the IMF has agreed on a 0.58 percent improvement in recovery of DISCOs.

In addition, a sum of Rs14 billion will also be received from the people under the head of the Sales Tax.