To align with the International Monetary Fund’s (IMF) requirements, the government has decided to expand the duration of peak hours for electricity, effective from July 1. Peak hours are defined as those periods of the day when electricity demand is at its maximum, and consumers are billed the highest per kilowatt-hour consumed.
Details of the Peak Hour Extension
The duration of peak hours has been extended by two hours. Initially set from 6 pm to 10 pm, the new peak hours now run from 5 pm to 11 pm, according to the report. The Power Division has stipulated that consumers using a time-of-use meter will now be charged Rs49.35 per unit during peak hours and Rs33.3 per unit outside these hours. Additionally, consumers with three-phase meters will now be billed Rs50 per unit during peak hours, compared to the previous rate of Rs30 per unit.
Financial Goals and Measures
The move aims to collect more than Rs3 trillion from consumers to manage line losses and control the power sector’s circular debt. It represents one among the many strategies the government has adopted to fulfil IMF’s requirements. This includes raising power tariffs, petroleum rates, and income tax, despite the high inflation rate currently burdening the populace.
Financial Aid Received
Earlier this week, the State Bank of Pakistan received the first tranche of a $3 billion bailout from the IMF, an amount of $1.2 billion aimed at stabilizing the economy. Additionally, Pakistan received $1 billion and $2 billion from the UAE and Saudi Arabia, respectively, following their reassurance of the agreement established between Islamabad and the IMF at the end of June.
