ISLAMABAD – The federal government has once again decided to increase the power tariff in a bid to reduce circular debt as the cabinet committee on energy has approved a revised circular debt plan in this regard.
Reports said that the government would increase basic tariff by 0.63 paisa per unit for February 2022, adding that an increase of Rs2.17/unit will be implanted on July 1, 2023.
The government has planned to reduce circular debt by Rs950 billion to bring the total debt to Rs1,526 billion by June 2023.
The documents, available to the media outlet, also show that the circular debt was stood at Rs2,476 billion till December 2021. It will be reduced to Rs2,280 billion by June 2022.
An increase of Rs0.63/unit from February 2022 will help government collect Rs85 billion by June 2023, while Rs207 billion will be collected yearly by increasing Rs2.17 in power basic tariff.
The cabinet committee has also made a three-pronged plan – reducing line losses, controlling circular debt and increasing revenue – to uplift the power sector.
