The sources say that the decision comes as a response to the disbursement of $1.2 billion by the International Monetary Fund (IMF) under the recently approved $3 billion bailout deal.
ISLAMABAD: (UrduPoint/Pakistan Point News-July 14th, 2023) The National Electric Power Regulatory Authority (NEPRA) is preparing to raise the base tariff for electricity in the ongoing financial year 2023-24.
The sources said that the move came as a response to the disbursement of $1.2 billion by the International Monetary Fund (IMF) under the recently approved $3 billion bailout deal.
They indicated that the IMF was urging Pakistan to enhance tax collection from the property and agriculture sectors by increasing the tax ratio. The decision to impose taxes on these sectors would be made by the new government, and if approved by the Federal board of Revenue (FBR), a mini-budget was expected to be introduced.
Pakistan received the first tranche of $1.2 billion from the International Monetary Fund under the SBA program on Thursday. The remaining $1.8 billion will be disbursed in two subsequent instalments after two reviews.
The IMF approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.
According to the sources, NEPRA would raise the electricity base tariff by Rs4.96 per unit. They said that the power regulatory authority will present its decision to the federal cabinet today, and the final determination on the tariff increase will be made by the cabinet.
Previously, NEPRA had considered three options for the new base tariff: below Rs. 8 per unit, below Rs. 7 per unit, and below Rs. 6 per unit. The previous base tariff increase was up to Rs. 5 per unit.
Pakistan is likely to introduce a mini-budget in response to the International Monetary Fund's request for a plan to improve tax collection from the property and agriculture sectors. The IMF has called for better tax collection as part of the second review of the Stand-By Arrangement (SBA) of $3 billion.
