The federal cabinet approved a hefty increase in energy basic pricing through circulation summary in a late-night action as Pakistan moves closer to meeting IMF terms.
According to sources close to the situation, the federal government has raised the basic power cost for numerous consumers by Rs3 to Rs7.5 per unit.
On the suggestion of the National Electric Power Regulatory Authority (Nepra), the cabinet approved a power tariff increase.
According to the plan, the government requested an Rs3 per unit hike for non-protected residential consumers using 1 to 100 units, raising the existing per unit cost from Rs 13.48 to Rs 16.48.
Similarly, for residential consumers using more than 700 units, the government recommended an increase of Rs 7.5/unit from Rs 35.22/unit to Rs 42.72/unit.
According to sources, the government has sent the tariff hike to the Nepra, and the regulator will hold a public hearing to decide the subject before issuing a formal notification.
If passed, the new tariff will go into force on July 1.
On July 14, Nepra granted the federal government a Rs 4.96/unit increase in the base energy cost.
The move comes after Prime Minister Shehbaz Sharif informed IMF Managing Director Kristalina Georgieva that no breach of the deal made with the global lender will be tolerated.
