After closing the petrol pump, now Pakistan will cut off the electricity of the people, imposed a new ‘power tax’ on the troubled public

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Islamabad : Prime Minister Shehbaz Sharif’s government is gearing up for a power cut after shutting down petrol pumps in Pakistan due to shortage of essential fuel. The Shahbaz government of Pakistan has imposed a new power tax on electricity consumers for revenue collection. According to media reports, the Shahbaz government of Pakistan has decided to impose a new power tax on its farmers and consumers to please the International Monetary Fund (IMF).

Power tax to get relief package

According to the report of the news agency Bhasha, Pakistan has approved the imposition of a new power tax on all electricity consumers, including farmers, to please the IMF. With this, the government is expected to get an additional revenue of Rs 170 billion. This step of the Government of Pakistan is being seen as a condition placed by the IMF. Before releasing a new installment of $ 1.1 billion under the relief package, the Monetary Fund had asked to take some strict steps.

IMF team returned without signing the agreement

An IMF delegation held talks with Pakistan officials for 10 days regarding the release of the tranche, but the delegation returned to Washington on Thursday without signing a staff-level agreement. Finance Minister Isaac Dar, the head of the Pakistani side in the talks, said on Friday that some concrete steps are needed to speed up the talks. Both sides will resume talks through virtual medium from Monday.

Tariff hike with special financing surcharge

According to a report on the website of Pakistan’s leading English newspaper Dawn, the Economic Coordination Committee (ECC) of the cabinet on Friday approved the implementation of special financing surcharge with Rs 3.39 per unit in the average electricity tariff. Apart from this, approval has also been given for recovery of pending fuel cost adjustments up to Rs 3.21 per unit for one year and Rs 4 per unit for three months till quarterly tariff adjustment.

Subsidy to farmers also stopped

The Economic Co-ordinating Committee approved the closure of zero-rated industries as well as the power tariff subsidy released on the farmer package to meet the IMF’s advance conditions. This order will be considered effective from March 1. Pakistan’s foreign exchange reserves, facing a cash crisis, have remained less than three billion dollars. He is in great need of financial help and a relief package from the IMF at this time to avoid financial collapse.

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