Federal Energy Minister Hammad Azhar has said that the federal cabinet has refused to increase the price of electricity despite the National Electric Power Regulatory Authority (NEPRA) recommendations in this regard, adding that there will be no immediate hike in the prices.
In a tweet, the minister responded to “news channels reporting an increase in power prices in October”. He said that there will be 0.08 paisa hike in the tariff because the Quarterly Tariff Adjustment will be renewed in October.
Meanwhile, the federal cabinet has allowed an increase of 8 paisas per unit for October.
According to a spokesperson, the Power Division has been directed to file a review notion with NEPRA so that electricity rates are not increased except Paisa 8 for October.
At the start of May, Finance Minister Shaukat Tareen had termed the International Monetary Fund’s (IMF) demand for increase in electricity tariff “unjustified”. Speaking in a meeting of the National Assembly Standing Committee on Finance, Tareen had presented a grim view of the national economy. “The economy is stagnant while the country did not have short-, medium- and long-term economic policies.”
Tareen had stressed that tough decisions will have to be taken to revive and stabilise the economy. “If the growth rate did not reach at least 5%, the country’s integrity will be at stake in four to five years,” the minister told the meeting, chaired by its chairman Faizullah Kamoka.
“The wheel of the economy is not turning and the IMF is demanding increase in electricity tariff. This is unjustified,” he said, adding that he had conveyed to the fund that the circular debt would be reduced but raising power tariff is incomprehensible. “Raising electricity prices will increase corruption.”
