IMF conditions: Current financial year will be harsh for electricity consumers

Electricity will be costlier in phases from September to December for additional recovery of Rs721 billion

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On the terms of the IMF, the government will collect an additional Rs721 billion from electricity consumers in the current financial year.

Due to the strict conditions of the IMF, the current financial year will prove to be harsh for electricity consumers. Sources have said that an additional Rs721 billion will be collected from power consumers in the current financial year.

Sources said electricity will be costlier for consumers in a phased manner from September to December.

By September, electricity will be costlier by Rs1.25 per unit under quarterly adjustment, in which Rs39 billion will be received from consumers.

According to sources, electricity is likely to be expensive by Rs4.37 per unit under FCA from September to December, and Rs122 billion will be received from consumers during this period.

Sources said that Rs560 billion will be received by increasing electricity by Rs5.75 in the form of annual rebasing, the amount will be spent to reduce the circular debt of the energy sector. Government plans to limit the circular debt of the power sector to Rs2130 billion by the end of the current financial year.

It should be noted that the government has shared a plan to eliminate circular debt in the energy sector with the IMF.