The World Bank is set to approve a ‘development policy’ credit amounting to USD 500 million to help Pakistan design an efficient and consumer-oriented electric power system which will help in reducing subsidies and improving tariff policy, entailing a reduction of the subsidies allocated in the federal budget from 1.8% in for year 2014 to 0.7% in for year 2015.
According to the proposed plan, it has been decided that the rate at which amounts billed are collected is expected to improve from 86% now to 94% at the end of for year 2016, and secondly, the amount of gas supplied from domestic resources is expected to increase from 3.8bcfd to 5bcfd by the end of the program.
