ISLAMABAD: At the request of the federal government, the National Electric Power Regulatory Authority (Nepra) has granted approval for a surcharge increase of Rs1.52 for Karachi Electric (KE) consumers.
This will result in a significant burden of Rs24.50 billion on the residents of Karachi. The exclusive power supplier for Pakistan’s most populous city is permitted to collect this additional surcharge from December 2023 to November 2024, as per Nepra’s decision.
While Nepra has sanctioned the tariff hike, the formal notification requires approval from the federal cabinet. It’s important to note that this increase will not impact the lifeline customers of the sole power provider.
Nepra justified its decision by citing Section 31(8) of the NEPRA Act, empowering the Federal Government to impose a surcharge for fulfilling its financial obligations. The surcharge aims to address the circular debt issue, and it is part of the government’s efforts to meet International Monetary Fund (IMF) requirements for a crucial loan under a short-term program.
Pakistan is expected to receive $700 million soon, providing a much-needed boost to its foreign reserves and aiding in debt repayment and import payments. The caretaker Minister for Finance, Dr. Shamshad Akhtar, expressed the interim government’s commitment to further raising electricity and gas tariffs. She stated that the plan includes an increase in gas prices in January of the following year to tackle the circular debt issue.
In a press conference, Dr. Akhtar emphasized the need for urgent action to reduce the circular debt, which has surpassed 4 percent of the Gross Domestic Product. The adjustments in electricity and gas rates are aligned with the goals of the IMF’s Stand-By Agreement Programme to decrease costs in the energy sector and enhance its efficiency.
Marlon Samuels Receives Six-Year Ban From ICC For Anti-Corruption Code Violation
Meanwhile, the International Cricket Council (ICC) has dealt a significant blow to former West Indies cricketer Marlon Samuels, imposing a substantial six-year ban for his violation of the Anti-Corruption Code.
