Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Seven percent raise in power tariff likely from October 1
09-27-2009, 05:21 AM
Post: #1
Seven percent raise in power tariff likely from October 1
MUSHTAQ GHUMMAN
ISLAMABAD (September 27 2009): The government is likely to increase power tariff by 7 percent from October 1, 2009 as agreed with the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB), after formal approval of Prime Minister Yousuf Raza Gilani. On July 15, 2009, Pakistan had reached an initial agreement with the World Bank and the Asian Development Bank to raise power tariff by 22-26 percent in three phases.

The government had initially committed to eliminate subsidies by the end of June 2009. However, it was later agreed that subsidies would be entirely eliminated by April 2010. Sources said Pakistan agreed to raise power tariff up to 7 percent on October 1, 10 percent on January 1, and 5 percent from April 1, 2010. There are reports that the Finance Ministry has dispatched a summary to the Prime Minister seeking his consent for raise in power tariff. However, a senior official of the Finance Ministry did not confirm these reports.

"We have not sent any summary to the Prime Minister; check it from the Ministry of Water and Power," he said. In reply to a question, he, however, confirmed that tariff adjustment "is due in accordance with the commitments" with the international financial institutions.

Finance Minister Shaukat Tarin, at a recent meeting of the Economic Co-ordination Committee (ECC) of the Cabinet, had stated that the government was bound to honour its commitments with the International Monetary Fund (IMF) regarding increase in tariff. Pakistan has to increase power tariff up to 28 percent till June 2010, in addition to 6 percent raise due to upcoming rental power plants (RPPs).

Under the agreement reached between GoP and the financial institutions, volume of subsidy would be kept at Rs 55 billion during the current financial year, sources said. The International Monetary Fund (IMF) has reportedly agreed to Rs 55 billion subsidy to consumers.

Sources said the government would provide 100 mmcfd gas for power generation to reduce consumption of furnace oil and to produce cheaper electricity to minimise the impact of power tariff on consumers. It was further agreed that the saving of Rs 12 billion on account of additional gas to be pumped into the power system would be used for the benefit of the consumers.

http://www.brecorder.com/index.php?id=96...=&supDate=

Power tariff likely to go further up by 6% from Oct 1
* US rejects Rs 22 billion grant request for increasing lifeline consumers’ benchmark

By Sajid Chaudhry

ISLAMABAD: The Water and Power Ministry, with the approval of the Ministry of Finance, has forwarded a proposal to the government for a six percent increase in the power tariff from October 1, official sources told Daily Times.

This would be the first increase out of a three-part 25 percent increase, to be passed on to consumers between October 2009 and August 2010. The 25 percent increase is part of the revised agreement with the World Bank and Asian Development Bank, the sources added.

Apart from the proposed tariff increase, the government, from September 1 2009, started to pass the burden of fluctuations in international prices of furnace oil onto consumers.

Pakistan has a Rs 165 billion deficit in revenue generated and expenses incurred in power generation as of June 30, 2009.

Request Rejected: Meanwhile, the US government has turned down Pakistan’s request for the release of Rs 22 billion grant to increase the benchmark of lifeline consumers from 50 to 100 units.

http://www.dailytimes.com.pk/default.asp...2009_pg1_6
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Indo-Pak ministerial talks to focus on removal of non-tariff walls Salman 0 1,694 04-11-2012 12:28 PM
Last Post: Salman
  CDA proposes increase in property tax & water tariff Salman 0 2,010 03-20-2012 12:31 PM
Last Post: Salman
  Information technology to raise living standard: CM Salman 0 2,226 02-24-2012 12:30 PM
Last Post: Salman
  Electricity tariff increased by Re 1.04 per unit Lahore_Real_Estate 0 4,582 08-03-2011 11:55 AM
Last Post: Lahore_Real_Estate
  Film festival held to raise awareness about violence against women Lahore_Real_Estate 0 1,883 03-04-2011 05:12 PM
Last Post: Lahore_Real_Estate
  Govt will try to raise POL prices on 31st Lahore_Real_Estate 0 1,394 01-29-2011 02:18 PM
Last Post: Lahore_Real_Estate
  DHA elections raise residents’ hopes of participatory decision-making Lahore_Real_Estate 0 1,727 12-04-2010 12:08 PM
Last Post: Lahore_Real_Estate
  GST will raise poultry prices by 40pc Lahore_Real_Estate 0 1,555 11-16-2010 01:49 PM
Last Post: Lahore_Real_Estate
  Pakistan aims to raise Rs 80b from Islamic bond Lahore_Real_Estate 0 1,602 10-30-2010 04:25 PM
Last Post: Lahore_Real_Estate
  Qureshi urges Obama to raise Kashmir issue with India Lahore_Real_Estate 0 1,900 10-23-2010 12:30 PM
Last Post: Lahore_Real_Estate
  NEPRA raises power tariff by 64 paisas per unit Lahore_Real_Estate 0 1,964 07-27-2010 01:14 PM
Last Post: Lahore_Real_Estate
  Government employees, pensioners get raise Lahore_Real_Estate 0 3,166 07-07-2010 12:36 PM
Last Post: Lahore_Real_Estate
  Power tariff increased by 7.6% Lahore_Real_Estate 0 1,360 07-01-2010 12:07 PM
Last Post: Lahore_Real_Estate
  FBR to find other sources to raise Rs 30bn if GST not increased Lahore_Real_Estate 0 1,804 06-12-2010 11:43 AM
Last Post: Lahore_Real_Estate
  Punjab govt set to announce 50% pay raise for govt employees Lahore_Real_Estate 0 2,597 06-12-2010 11:42 AM
Last Post: Lahore_Real_Estate
  800pc raise in LDA commercialisation fee Lahore_Real_Estate 0 1,818 01-26-2010 01:18 PM
Last Post: Lahore_Real_Estate
  Natural Gas tariff raised by 18% Naveed Yaseen 0 2,648 11-21-2009 08:35 AM
Last Post: Naveed Yaseen
  Ogra recommends 26% hike in gas tariff from Jan 2010 Naveed Yaseen 0 1,404 11-17-2009 08:30 AM
Last Post: Naveed Yaseen
  Govt to raise power tariff by 13.6% Jan, another 6% by April: Tarin Naveed Yaseen 0 1,466 11-16-2009 09:16 PM
Last Post: Naveed Yaseen
  Pakistan to raise power, gas tariffs another 12% on IMF demand Naveed Yaseen 0 2,714 11-14-2009 06:38 AM
Last Post: Naveed Yaseen

Forum Jump:


User(s) browsing this thread: 1 Guest(s)