Government likely to increase gas, electricity prices soon

Sources say installment worth $540 million to IMF is due and the govt has made plan to extract the money from the public

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Rizwan Abbasi

Islamabad

The prices of gas and electricity are likely to increase soon as the PTI government has allegedly prepared a summary to increase power prices in the next three months, sources said on Tuesday.

The sources said that instalment worth $540 million to International Monitory Fund (IMF) is due and the government has made plan to extract the money from the public pockets. The development will not only cause another increase in power prices but Banks will also create problems for them.

According to details, the PTI government has started implementing four conditions of IMF. The first condition was the government was bound to ensure full production of all power companies till January 30. The government sources said that out of a total Rs155 billion annual, 25 percent will be charged from public in electricity and gas bills.

The government is planning to extract Rs40 billion from public in electricity bills. As per the conditions, the government will have to make 214 percent increases in the gas price.

As per second condition, the government will be bound to inform the Parliament about its income, expenditures and savings and in the light of the Parliament’s recommendations new plan for the next year will be evolved.

The third condition binds the government to table a bill making State Bank as an autonomous in the Parliament. The bill will be enshrined that the State Bank will not print new currency notes and Governor State Bank will be independent in his work and decisions.

The fourth condition was that the government will take all measures to ensure implementation of FATF articles. Under the FATF, the government will actively be vigilant of money transitions.

It is pertinent to mention here that the government will be able to get third installment of the IMF financial aid after meeting all these four requirements.