“Pakistan Government Backtracks on Electricity Price Increase for 200 Units”
The government of Pakistan has withdrawn the decision to increase the electricity prices for consumers who use up to 200 units per month, which is a very good decision. The decision is expected to provide significant relief to low and middle income families across the country.
Prime Minister's Directive
The withdrawal of the price hike decision comes after Prime Minister Shehbaz Sharif directed the federal cabinet to approve the circulation summary to withdraw the tariff increase for both protected and non-protected consumers using up to 200 units. The Prime Minister’s directive is seen as a move to alleviate the economic pressures faced by citizens, particularly in light of the current economic challenges.
Subsidy to Offset Tariff Reduction
To offset the impact of this decision, the federal government will provide a subsidy of approximately Rs51 billion. This subsidy aims to cushion the financial burden on the national exchequer while ensuring that consumers receive immediate relief on their electricity bills.
Tariff Structure
For Lifeline users, who are among the most economically vulnerable sections of the society, the government has maintained the current tariff to provide continuous support. It is a very good decision. The tariff structure is as follows:
• Consumers using up to 50 units per month will continue to pay a tariff of Rs3.90 per unit.
• Consumers using between 51 and 100 units per month will have their tariff remain at Rs7.70 per unit.
Reasons Behind the Withdrawal
The government’s decision to withdraw the price hike comes after massive public outcry and potential political backlash against overbilling and the sudden high rise in inflation to meet International Monetary Fund (IMF) conditions.
Impact on the Economy
The withdrawal of the price hike decision is expected to have a positive impact on the economy, as it will reduce the burden on low and middle-income families and help to control inflation. The government’s decision to provide a subsidy of Rs50 billion will also help to offset the impact of the tariff reduction on the national exchequer.
Conclusion
The government of Pakistan’s decision to withdraw the decision to increase electricity prices for consumers with 200 units is a welcome move that will provide relief to low and middle-income families across the country. The Prime Minister’s directive and the government’s decision to provide a subsidy to offset the tariff reduction demonstrate the government’s commitment to alleviating the economic pressures faced by citizens.
Latest Updates
• The federal government has withdrawn the decision to increase electricity prices for consumers using up to 200 units per month.
• The Prime Minister has directed the federal cabinet to approve the circulation summary to withdraw the tariff increase for both protected and non-protected consumers using up to 200 units.
• The government will provide a subsidy of approximately Rs50 billion to offset the impact of the tariff reduction.
• The tariff structure for lifeline customers remains unchanged, with consumers using up to 50 units per month paying a tariff of Rs3.90 per unit and those using between 51 and 100 units per month paying a tariff of Rs7.70 per unit.
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