The federal government has decided to immediately implement the conditions set for the restoration of the IMF program.
The federal cabinet has approved a plan to increase the price of electricity and end subsidies.
Under the plan, electricity rate will increase by Rs7 per unit for domestic consumers till June.
Moreover, the subsidy on electricity for the export sector as well as farmers will end from March, while a subsidy of Rs12.13 per unit on electricity will be returned to the export sector.
According to officials, about Rs250 billion will be recovered from electricity consumers by June.
Under the plan, a surcharge of Rs3.39 per unit will be levied, while electricity rate will also be increased under quarterly adjustments. By June, the increase in quarterly adjustments will yield Rs73 billion.
Under the quarterly adjustments, electricity price will be jacked up by Rs4.46 this month. The average increase in tariff in February will be Rs3.21 per unit, while in March, the price of electricity will be increased by 69 paisas in the quarterly adjustment.
In the quarterly adjustment in June, power will cost Rs1.64, and Rs1.98 per unit in the quarterly adjustment in September.
By June, Rs65 billion will be generated by ending subsidy for the export sector and farmers. Moreover, Rs51 billion will be obtained by ending subsidy on electricity for exporters, while Rs14 billion will be gained by ending subsidy on electricity under the Kisan Package.
