Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
    Squid Game Season 3
    Videos

    Squid Game Season 3: Final Trailer Unveils Epic Plot

    June 14, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Govt Plans Significant Power Tariff Increase to Meet IMF Conditions
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Pakistan Power Tariff Increase
PhotoNews Pakistan > Pakistan > Govt Plans Significant Power Tariff Increase to Meet IMF Conditions
Pakistan

Govt Plans Significant Power Tariff Increase to Meet IMF Conditions

Web Desk
By Web Desk Published July 11, 2023 3 Min Read
Share
SHARE

To increase revenue and meet International Monetary Fund (IMF) conditions, the Pakistani government plans to raise the power base tariff by roughly Rs7 per unit for the fiscal year 2023-24. This increase will generate over Rs3.2 trillion from power consumers beginning in July 2023. This plan is set to be discussed at the IMF Executive Board meeting on July 12, with its approval solidifying the terms of the IMF Staff Level Agreement.

The IMF has advocated for this increase, urging Pakistan to increase tariffs and eliminate power subsidies to narrow the fiscal deficit. With the proposed increase calculated by the National Electric Power Regulatory Authority (Nepra) and an additional 18% GST on bills, power consumers will face significantly higher costs starting in July 2023.

Anticipated Impacts and Measures to Address Increased Tariffs

This proposed increase will significantly impact all residential, commercial, and industrial sectors. For businesses, the increased cost of power will be passed on to consumers, contributing to inflation. Residential customers must budget more for their power usage, straining household finances. However, the government asserts this increase is necessary for the revival of the power sector and the overall economy.

The government has promised targeted subsidies to ease the burden on low-income and vulnerable citizens. In addition, a payment of Rs142 billion was made to over a hundred Independent Power Producers (IPPs) by the end of the previous month. This action reduced the outstanding dues of power producers and improved their cash flows.

Meanwhile, the power sector grapples with a circular debt of Rs2.64 trillion. The IMF has also called for a 45-50% increase in gas tariffs from July 1, 2023. This increase will affect Sui Northern Gas Pipelines Limited (SNGPL) customers and Sui Southern Gas Company Limited (SSGCL), likely causing high-end consumers to subsidise low-end consumers, as has been the government’s policy.

As the base tariff increase is finalized, confusion and uncertainty surround the finance ministry and Nepra officials, especially in light of the imminent IMF board meeting. The projections regarding the dollar’s value, GDP growth, and inflation rates are essential in determining the base tariff.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Humaira Asghar Death

Karachi Court Petition Alleges Murder in Actress Humaira Asghar’s Death Case

Pakistan stock market rally

PSX KSE-100 Surges 1.2% as Banking Stocks Rally on Strong Macroeconomic Data

Hafeez Centre fire Lahore

Lahore’s Hafeez Centre Fire Brought Under Control, Rescue Ops Continue

Post Archives

More Popular from Photonews

Tom Brady, Sydney Sweeney
Entertainment

Ernestine Sclafani Slams Tom Brady-Sydney Sweeney Romance Rumors

3 Min Read
Imran Khan Legal Case
Pakistan

Imran Khan, Bushra Bibi Seek Urgent IHC Hearing for £190M Case Suspension

2 Min Read
Pakistan GLOF Alert
Pakistan

PMS Issues GLOF Alert for Gilgit-Baltistan, Khyber Pakhtunkhwa

2 Min Read
Sports

Pakistan Names 15-Member T20I Squad for Bangladesh Series

On July 8, 2025, the Pakistan Cricket Board (PCB) unveiled a 15-member squad for a three-match…

July 8, 2025
Punjab

Rs 750 Prize Bond Draw Set for July 15 in Rawalpindi

On July 7, 2025, the National Savings Centre announced the Rs 750 Prize Bond Draw No.…

July 8, 2025
Pakistan

Pakistan Approves Shariah Compliant Virtual Assets Act 2025 to Regulate Crypto

On July 9, 2025, Pakistan’s Federal Cabinet, led by Prime Minister Shehbaz Sharif and President Arif…

July 9, 2025
Top NewsWorld

Putin Tells Trump Russia Won’t Abandon Ukraine Goals

Russian President Vladimir Putin told U.S. President Donald Trump during a nearly hour-long call that Moscow…

July 4, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?