On Wednesday, the Economic Coordination Committee (ECC) approved an increase in the power tariff by up to 17 percent, also gas rates increased by nearly 15 percent that will burden the energy consumers by Rs 152 billion.
To get an additional 152 billion, the per unit increase in power tariff is a minimum of 32 paisa that makes 2 percent for up to 200 units monthly consumers. The maximum power tariff is Rs 2.63 that makes 17.2 percent for commercial and industrial consumers. The electricity tariff increased on account of quarterly price adjustments and 130 billion will have to be paid by consumers excluding the impact of sales tax.
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Likewise, the approval of gas prices has also been given to increase by Rs 50 per MMBtu for all consumers. No increase in gas rates would be applied on domestic and roti tandoor which fall in the range of 3.9% to 14.8%. This increase in rates would provide the government additional revenues of Rs 22 billion.
In addition to that, the gas tariffs for Sindh-based exporters have been increased by 18.3% or Rs 144 per MMBtu for five months period.
Economic Coordination Committee (ECC) of the Cabinet took the decision to increase power and gas tariff which will be reviewed by the federal cabinet for its ratification. The ECC’s nod may also help to remove blockages in the revival of the stalled International Monetary Fund programme.
Dr. Abdul Hafeez Shaikh Adviser to the Prime Minister on Finance and Revenue supervised the Economic Coordination Committee and approved to terminate half of the employees of the Pakistan Steel Mills. The committee also sanctioned Rs 31.4 billion for the golden handshake and clearing outstanding dues.
An official handout of the Ministry of Finance said, “The ECC decided to rationalize the tariff of the power sector-FCA and quarterly adjustments which were due for the period from November 2019 to June 2020.”