ISLAMABAD: Eager to revive a debt program to shore up a sagging economy, Pakistan on Wednesday rejected the International Monetary Fund’s (IMF) demand to impose electricity surcharges on consumers in the next financial year. Accepted.
Pakistani officials are baffled by the IMF’s “alternative goalpost” as the country scrambles to woo the lender to open the $6.5 billion Extended Fund Facility (EFF) it signed in 2019. New conditions have been set.
The cash-strapped country is taking key steps to secure a $1 billion tranche from the IMF under the EFF’s ninth review. Measures include tax increases, and the removal of blanket subsidies and artificial restrictions on the exchange rate.
In response to another IMF demand, the Economic Coordination Committee (ECC), which met under the chairmanship of Finance Minister Ishaq Dar, approved a power surcharge of up to Rs 3.82 per unit from March to June 2023. .
In the next financial year 2023-24, electricity consumers will be charged an average surcharge of Rs 2.63 per unit of electricity to meet another tough condition imposed by the IMF to revive the stalled IMF programme. can be done
This electricity surcharge will also be applicable to K-Electric electricity consumers.
Tariff for K-Electric consumers
ECC approved tariff rationalization for K-Electric for consumption adjustment from July 2022 to September 2022 and for recovery from consumers from March 2023 to May 2023 respectively.
It also approved an increase in the surcharge for the fiscal year 2024 to meet the federal government’s obligations to power producers.
For FY24, these surcharges will also be applicable to K-Electric customers to maintain a uniform tariff across the country.
Tariff hike for residential consumers by Rs 1.55 per kWh for the second quarter of 2021-22 and from Rs 1.4 per kWh to Rs 4.45 per kilowatt-hour for the first quarter of 2022-23 depending on the consumption of units. Another increase of up to watts per hour.
Ramazan Relief Package
The ECC also approved a Rs 5 billion Ramadan relief package through Utility Stores Corporation based on a hybrid model of targeted and non-targeted subsidies.
The package proposed by the Ministry of Industries and Production will include 19 items that can be purchased at utility stores across the country.
It also allowed waiver of storage charges on containers stranded due to non-retirement of LCs and remittance of foreign currency.
The body considered the summary submitted by the Ministry of National Food Security and Research on the procurement price of wheat crop 2022-23 and after detailed discussion fixed the uniform price of wheat crop 2022-23 at Rs 3,900/40 kg. Approved.
On the other hand, Sindh had notified the support price of wheat at Rs 4000 per kg and Punjab at Rs 3900 per kg.
At the same time, the Trading Corporation of Pakistan pegged the price of imported wheat at Rs 4,500 to Rs 5,000/40 kg, including inland transport and Pasco events.
The Pakistan Bureau of Statistics highlighted that on February 23, wheat was available at Rs 4,359/40 kg in Punjab, Rs 3,825/40 kg in Sindh, Rs 4,198/40 kg in KPK and Rs 5,109/40 kg in Balochistan.
The ECC considered the summary submitted by the Ministry of Maritime Affairs and approved the resolution of Karachi Port Trust (KPT) Board resulting in storage of containers/cargo docked at Karachi Port. All charges were waived. Retirement of letters of credits and foreign exchange remittances.
However, if the demurrage charges exceed Rs 50 lakh, the KPT will have to seek certification from the State Bank before granting waiver.
The ECC further directed that the amount of cleared consignments should be reported on monthly basis.
