NewsImran Khan gov posed to raise power tariff following...

Imran Khan gov posed to raise power tariff following major blackouts


Islamabad (Pakistan): Despite an outcry by its citizens over massive blackout recently, Imran Khan government on Friday has once again planned to raise the power tariffs amid increasing IMF debt.

It will be increasing the power tariff by (Pakistani Rupee) Rs 1.90 per unit to revive the stalled IMF loan program under the USD 6 billion Extended Fund Facility (EFF), top official sources told The News International.

The government has projected that the circular debt will mount up to Rs 2,805 billion by the end of June 2021, putting the bleeding power sector into a severe cash constraint situation.

The PTI government led by Imran Khan has already hiked the power tariff several times, but it has not helped.

A hike of Rs 3.30 per unit had been agreed on by the government in phases. The first hike of Rs 1.90 per unit is expected to be announced in the next few days, reported The News International.

The multilateral creditors, including the IMF, World Bank, and Asian Development Bank, had often suggested increasing power tariffs in the past to fix the problem of circular debt.

The circular debt was persistently raising trends and it might escalate to Rs 2,805 billion by the end of June 2021. It had climbed to Rs 2,150 billion during the last financial year 2019-20, indicating that the bleeding of the power sector surged by Rs 538 billion just in 12 months from July 2019 to June 30, 2020, reported The News International.

This shows that the circular debt went up by Rs 44.8 billion on a monthly basis in the last financial year.

Meanwhile, the Imran government shifted the blame on the COVID-19 pandemic and said that the situation ballooned the circular debt in the second half of the last fiscal year.

The government performance was also exposed as it claimed that the monthly accumulation of circular debt was curtailed at just Rs 10 to 12 billion. However, it proved wrong because senior officials of the power division did not include all the heads while calculating the circular debt, reported The News International.

The amount payable to IPPs is projected to grow from Rs 1,038 billion at the end of June 2020 to Rs 1,711 billion by the end of June 2021. “There is a projection that the circular debt might increase by Rs 499 billion in the financial year 2020-21,” said an official — ANI


Please enter your comment!
Please enter your name here

Latest news

Swiss unanimously votes for same-sex union referendum

GENEVA — In Switzerland, a controversial same-sex marriage referendum has been resoundingly approved by voters of the conservative, rich Alpine...

New Covid surge overwhelms hospitals in parts of US

WASHINGTON, D.C. — According to one of the country's top health officials, the spike in coronavirus cases in the...

China wants effeminate male celebs to man up

WASHINGTON — Macho men are in and effeminate male performers are out as Beijing expands its crackdown on China's entertainment...

Billie Eilish, BTS to perform at climate change concert

Billie Eilish, BTS, and Elton John, among others, will donate their star power to Global Citizen Live on Saturday...

Google faces off EU in court over record $5.1 billion antitrust fine

This week, Google will face the European Commission in a five-day court hearing, appealing a record $5.1 billion fine...

WHO’s Covax misses 2021 target. What went wrong?

The latest supply forecast for Covax – the programme for sharing COVID-19 vaccines around the world – suggests that accelerating vaccination...

Must read

You might also likeRELATED
Recommended to you