To increase the price of electricity, Pakistan has provided the IMF with a plan until November of this year.
The details of the circular debt management plan between the government of Pakistan and the IMF have come to light. According to the document, Pakistan has planned to increase the price of electricity on three bases till November 2023. The following are the agreed points:
- The government will increase the cost of electricity by Rs 7.91 per unit.
- From February to March, the price will be increased by Rs 3.21 per unit.
- In the March-May second quarter, electricity will be more expensive by Rs 0.69 per unit.
- Electricity rates will be increased by Rs 1.64 per unit in the third quarter of June-August.
- From September to November, the per unit electricity rate will increase further by Rs 1.98.
- Under the Kisan package, the electricity subsidy will be abolished from March 1. It will save 65 billion rupees.
- The IMF imposed a condition of reducing 16.2 billion rupees in technical electricity losses.
- The IMF agreed to a 0.58% improvement in the recovery of electricity distribution companies.
- As part of the November fuel charge adjustment, an additional Rs 35 billion will be collected from consumers by the end of March.
- The fuel charge adjustment will result in a collection of 14 billion rupees from March to November as sales tax.
- The IMF has set a recovery target of 90.4 per cent for electricity distribution companies.