ISLAMABAD: Amid rising inflation, Pakistan’s National Electric Power Regulatory Authority (NEPRA) on Tuesday jacked up the power tariff by Rs3.99 per unit on account of fuel cost adjustment (FCA) for the month of April, the regulator said.
The development comes as Pakistani and International Monetary Fund (IMF) officials remained engaged for the revival of $6 billion loan program Islamabad availed in 2019, which will see the disbursement of around $1 billion tranche to the South Asian nation. On May 26, the government raised petroleum prices by Rs30 per liter after IMF officials expressed concern about the fiscal and current account situation arising from $2 billion energy subsidies and other slippages.
Pakistan has been struggling with a worsening balance-of-payment crisis in the face of declining foreign exchange reserves, with inflation in the South Asian nation expected to reach 14.3 percent in May and the recent energy price hikes further impacting the economic indicators in the month of June.
On Tuesday, NEPRA Chairman Tauseef H Farooqi held an open hearing on power distribution companies’ claims for FCA for the month of April.
“The CPPA-G (Central Power Purchasing Agency [Guarantee]) had submitted a request for an increase in tariff by Rs4.5 per unit,” NEPRA said in a statement.
“However, according to the preliminary examination of the data, it [FCA] was Rs3.99.”
The FCA for the month of April will be charged in electricity bills for June, according to the power regulator. However, it will not be applicable to lifeline consumers.
Pakistani cities and rural areas have been facing hours-long power outages as the country’s power shortfall has reached 7,000 megawatts, local media reported on Tuesday.
Government officials say several power plants in the country were closed due to a lack of fuel and other technical issues, which have resulted in the shortfall and outages.
Prime Minister Shehbaz Sharif’s government blames former administration of Imran Khan for the crisis, saying it neither procured fuel nor undertook proper maintenance and repair of power plants. Khan’s Pakistan Tehreek-e-Insaf (PTI) party denies the allegations.
