The Power Division on Monday said that under the IMF agreement, the government cannot reduce electricity tariffs. It has adopted the stance that relief to the people can only be given by enhancing recoveries.
The increase in basic electricity tariff was done on a condition of the IMF, the Division maintained, adding that the annual electricity theft and losses account to more than Rs500 billion.
Electricity defaulters also owe more than Rs1,200 billion, the department said, adding that the electricity price was hiked to contain the circular debt of Rs2,310 billion.
The challenges include expensive imported fuel, the rising dollar value and 70% capacity per unit.