ISLAMABAD: Under IMF condition, government has worked out planning to charge additional Rs 721 billion to electricity consumers during current fiscal year.

Plan worked out by Finance Ministry and Energy Ministry for enhancing power tariff has been shared with IMF.

Sources said electricity tariff will be inflated by Rs 1.25 per unit till September under head of quarterly adjustment. This way government will collect additional Rs 39 billion from consumers against quarterly adjustment for month of September.

Cost of electricity will be scaled up by Rs 4.37 per unit from September to December under fuel adjustment head and this way government will recover additional Rs 122 from consumers.

Rs 560 billion will be charged to consumers through electricity bills by raising cost of electricity Rs 5.75 per unit under head of rebasing of power tariff.  

Additional amount will be utilised to mitigate circular debt of power sector. Finance ministry sources said circular debt of power sector will be restricted to Rs 2130 billion by the end of current year. Circular debt of power sector had reached Rs 2,700 billion till June 2023.