ISLAMABAD: As directed by SIFC (Special Investment Finance Council), the Power Division has submitted the draft of the new electricity tariff design to the Ministry of Finance to accelerate the economic development of the country as per the existing tariff system. For this, approval can be obtained from the IMF.
Nothing is being achieved from the current tariff except economic misery, 98% of domestic consumers are subsidized to the tune of 631 billion rupees, the government share is 158 billion, and the remaining costs are being borne by industrial, commercial, and high-end consumers.
The apex committee of SIFC, which met on January 3, 2024, had earlier directed the top officials of the power division to review the electricity tariff, said senior officials of the SIFC Secretariat and the Ministry of Power. Set up the system in such a way that economic activity can accelerate at a faster rate.
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According to details, SIFC was informed in its meeting on January 3, 204 that the Power Division has completed its work for power tariff restructuring and will soon be submitted to the Finance Ministry for IMF approval.
The caretaker Ministry of Energy, while talking to The News, confirmed that the Power Division has completed its work on restructuring the current electricity tariff system and submitted it to the Finance Ministry, which has sent it to the IMF for approval. Officials will raise, at present, the total cost of a power unit consists of 72 percent fixed charges and 28 percent variable charges but on the revenue side, fixed charges are only 2 percent and variable charges are 98 percent.
Officials have said that the relevant authorities have found a mismatch in cost and revenue structure in the electricity tariff as 72% of the cost is fixed while the current tariff is only 2% revenue fixed and about 98% of the domestic consumers (29 million consumers ) are covered. 631 billion rupees subsidy is being received.