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Govt Postpones Electricity Tariff Hike For A Week

Islamabad (October 16, 2018): Government on Tuesday decided to postpone hike in electricity tariff for a week.

According to the details, Economic Coordination Committee (ECC) meeting chaired by Finance Minister Asad Umar on Tuesday has deferred the decision of hike in the power tariff by Rs3.75 per unit until a week.

The summary regarding a hike in power tariffs was presented in the ECC meeting today, however, the decision has been postponed till next meeting.

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According to summary prepared by the government on Monday, “Recommendations have been made for increase in prices for the years 2016-17 and 2017-18 as per which the price per unit is expected to rise to Rs3.75.

The summary also includes arrears amounting to additional Rs400 billion to be collected from customers every month.

After an increase in the gas tariff, the government is likely to increase the prices of electricity by Rs3.75 per unit.Economic Coordination Committee at its meeting in Islamabad today approved the mechanism for supply of uninterrupted gas to zero-rated export-oriented industry.

The meeting chaired by Finance Minister Asad Umar approved the supply of RLNG to the export industry for three months from December this year to February next month.

According to the mechanism, the export sectors will be provided mix energy including RLNG from March to November.

Earlier on October 02, Finance Minister Asad Umer Chaired ECC meeting in Islamabad and decided to delay increase in electricity tariff for at least a fortnight owing to upcoming by-elections even though it is once again on top of the agenda of the Economic Coordination Committee (ECC) of the Cabinet.

Economic Coordination Committee of the Cabinet has also allowed export of one million metric ton surplus sugar.

The Committee approved one month salary to the employees of Pakistan Steel Mill and revised cess rates of tobacco.The ECC directed formation of special committee comprising members from Finance, Power Division, Auditor General of Pakistan, Ministry of Petroleum, FBR to address various issues of K-Electric.

The committee deferred a proposal regarding tariff rationalization for power sector on the request from the Finance and Power Divisions who sought for further time to deliberate the proposed revisions.The ECC also approved a proposal from the Commerce Division for export of one million metric ton (1-MMT) surplus sugar.

The proposal outlined that only those Sugar Mills will be allowed to export sugar which has paid arrears to farmers for all the crops up to 2017-18.

It was discussed that an inter-ministerial committee will have fortnightly meetings to review sugar stock, export and price situation.

While shedding light to another proposal of Ministry of Commerce, the ECC accorded approval for revision of cess rates of tobacco for the year 2018-19 as determined by the Pakistan Tobacco Board— it may be added that prices of various types of tobacco are fixed every year and cess rates are also revised.In consideration of issues over the transfer of shares of K-Electric, the ECC directed the immediate formation of a special committee comprising representatives from Finance, Power Division, Auditor General of Pakistan, Ministry of Petroleum, FBR to address on various issues relating the matter.

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