Pakistan increases power tariff by Rs3.99 per unit amid rising inflation

A Pakistani employee of the state-run Islamabad Electric Supply Company (IESCO), takes a meter reading with his smartphone at a commercial building in Islamabad, Pakistan, on November 7, 2018.(AFP/File)
Short Url
Updated 31 May 2022
Follow

Pakistan increases power tariff by Rs3.99 per unit amid rising inflation

  • The increase on account of fuel cost adjustment will be charged in electricity bills of June
  • Pakistan faces worsening balance-of-payment crisis, with inflation expected to hit 14.3 percent in May

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. 


Women among eight killed in shootings in southwest Pakistan near Iran border

Updated 5 sec ago
Follow

Women among eight killed in shootings in southwest Pakistan near Iran border

  • Six people were killed in shootout between unidentified gunmen and local residents in Panjgur district, says police official
  • Says in second incident, border forces fired upon truck carrying illegal Afghan migrants after it did not stop at security checkpost

QUETTA: At least eight people, including two Afghan women, were killed in separate shooting incidents in a southwestern Pakistani district that borders Iran, a police official said this week. 

Both incidents took place on Monday and in Balochistan’s Panjgur district. The first incident took place near the Chedgi border crossing with Iran, located around 80 kilometers from Panjgur city, Deputy Superintendent of Police Javed Ahmed said. Armed men ambushed what he said were a group of “state-backed” locals working near the border. He did not elaborate further about their affiliation nor the nature of their work. 

“After an intense gunbattle between the attackers and the local residents, six people were killed,” Ahmed told Arab News on Monday. “Armed men torched two vehicles before leaving the area.”

No group has claimed responsibility for the attack but ethnic Baloch separatist groups, the most prominent among them the Baloch Liberation Army (BLA), often target tribal leaders and local residents that are backed by the state. 

Ahmed said families of the deceased did not bring the bodies to a hospital for autopsy as the terrain there is mountainous and the roads are in a dilapidated condition. Instead, the victims’ relatives buried the bodies in their hometown close to the Iran border. 

The second shooting incident took place in Prom, a border town in the same district located around 110 kilometers from Panjgur city, during the wee hours of Monday. A pickup truck carrying illegal Afghan migrants attempted to escape a border security checkpost, prompting border forces to fire at the vehicle, the police official said. 
 
“Pakistani border forces asked the driver to stop but he sped up the pickup truck,” Ahmed said. “As a result of border security forces’ firing, two Afghan women boarded on the Zamyad pickup truck were killed and three other illegal migrants were injured who were later shifted to the hospital.”
 
Every year, thousands of Afghan migrants travel illegally through the mountainous and deserted routes through Balochistan to Iran and ultimately, Europe. 

Balochistan, which shares porous borders with Afghanistan and Iran, has been the scene of a low-lying insurgency for decades. Militants have frequently targeted government officials, security forces, laborers and Chinese personnel in the area. 

Separatist militant groups such as the BLA accuse the government of exploiting the province’s resources and denying locals a fair share in them. Pakistan’s government rejects the allegations and says it is undertaking several social and economic initiatives in the province to uplift the local population. 

The shootings occur as the security situation in the province sharply deteriorates in recent months. The BLA carried out a series of coordinated attacks in multiple locations across the province on Jan. 30-31, killing at least 36 civilians and 22 law enforcement personnel, the government said. Pakistan’s military said it killed 216 militants in counter-offensive operations. 

On Sunday, unidentified gunmen kidnapped nine laborers from two construction sites in the province.