The Ministry of Energy, Power Division on Wednesday dismissed reports regarding a potential hike in electricity tariff, saying no such increase is under consideration.
“No electricity tariff-increase is under consideration in Ministry of Power,” said the ministry on its official Twitter page.
“PM Shehbaz Sharif has issued clear directions to not increase electricity tariff. News-items are misleading, as based upon an internal exercise proposed by Finance Division and shelved by Minister for Power.”
Its statement comes after it was reported that the government, in its effort to revive the stalled International Monetary Fund (IMF) programme, has made a plan under which the electricity tariff can go up by Rs31.6/kWh through the imposition of a new surcharge.
Pakistan is currently in the midst of a financial crunch with policymakers running from pillar to post to secure additional funds for a country reeling from flood disaster. Authorities in Islamabad and the IMF are also engaged in discussions over the 9th review of the Extended Fund Facility, with power tariff reportedly under discussion.
The South Asian country is also seeking financial help from Saudi Arabia, which will include doubling Riyadh’s current deferred oil payment facility to $2.4 billion per year.
Earlier, Finance Minister Ishaq Dar said that the international lender wanted to see not only the previous quarter but also the next three quarters to see how Pakistan would meet the $16 billion reconstruction and rehabilitation phase of floods.
Dar said that the “first quarter’s review in totality and performance criteria is in order and had the Fund come in October 2022 and reviewed, the 9th review would have been over.
“I don’t want to indulge in global politics but I did request them to come at the end of October, or early November but they chose not to,” he added.
“IMF wants to see not only the previous quarter but also the next three quarters of the current fiscal year.”
Revival of the IMF programme is being seen as key to resolving part of Pakistan’s economic problems, a country subject to one of the highest inflation rates in the world.