Islamabad: The Ministry of Energy on Wednesday dismissed reports regarding a potential hike in electricity tariff, saying no such increase is under consideration.
In a statement, the energy ministry stated: “PM Shehbaz Sharif has issued clear directions to not increase electricity tariff.”
No electricity tariff-increase is under consideration in Ministry of Power
PM Shehbaz Sharif has issued clear directions to not increase electricity tariff
News-items are misleading, as based upon an internal exercise proposed by Finance Div & shelved by Minister for Power
— Ministry of Energy (@MoWP15) December 21, 2022
The rebuttal from the ministry came after it was reported that in its effort to revive the stalled International Monetary Fund (IMF) program, the government had made a plan under which the electricity tariff can go up by Rs31.6/kWh through the imposition of a new surcharge.
Pakistan is currently in the midst of a financial crunch, with policymakers running from pillar to post to secure additional funds for the country reeling from the disasters brought on by the monsoonal floods. Authorities in Islamabad and the IMF are also engaged in discussions over the 9th review of the Extended Fund Facility, with the power tariff reportedly under discussion.
The South Asian country is also seeking financial help from Saudi Arabia, which will include doubling Riyadh’s current deferred oil payment facility to $2.4 billion per year.