The federal government has jacked up power tariff for the export industry by Rs 12.13 per unit on Wednesday. As per details, the increase in power tariff is made to implement the International Monetary Fund (IMF) conditions. The government also has ended the subsidy on power for the export industry.

The power supply to the export industry at Rs 19.99 per unit has been withdrawn and the notification will be effective from today. The power division has written a letter to K-electric and all the power distributing companies for the implementation of this decision.

The decision to withdraw subsidy on electricity for exporters will generate Rs 51 billion. Earlier, the federal government agreed to raise prices of electricity and gas as Pakistan and International Monetary Fund (IMF) moved closer to the revival of $7 billion Extended Fund Facility (EFF) stalled for months.

The Fund and Pakistan had moved closer to the revival of their loan package as Islamabad agreed to several conditions including increasing energy prices and improve tax collection, as demanded by the IMF.

International Monetary Fund (IMF) has asked Pakistan to impose roughly Rs600-800 billion in additional taxes in the second round of talks to revive $7 billion Extended Fund Facility (EFF). During the meeting, the Fund set tough conditions for additional measures that included imposing roughly Rs600-800 billion in additional taxes.

Credit : Independent News Pakistan-INP