Govt slaps power surcharge for next fiscal year

The government surrendered to another IMF demand on Wednesday, imposing a surcharge of up to Rs3.23 per unit on electricity consumers across the country from July 1. The move is aimed at generating Rs335 billion more in revenue over the next fiscal year to finance the power sector’s debt and liabilities. Consumers of K-Electric would be facing double jeopardy, as the government also gave the Karachi power utility the go-ahead to increase tariff by Rs1.56 per unit in the current month and then another Rs6.11 per unit in April and May, to ensure uniform electricity rates on a par with other distribution companies in the country. These decisions were taken at a meeting of the cabinet’s Economic Coordination Committee (ECC), presided by Finance Minister Ishaq Dar, which also approved a Rs5bn Ramazan relief package for Utility Stores, Rs3,900 per 40kg uniform minimum procurement price for wheat, and a waiver of storage charges on cargoes stuck at ports for letters of credit problems.