Electricity tariff won’t increase: Tarin

ISLAMABAD: Shaukat Tarin, finance adviser to the Prime Minister, said Friday that the government would not increase electricity tariff rates until the load-shedding problem has been resolved.

‘It is not logical to enhance electricity rates at a time when people are facing load-shedding problems,’ said Tarin, addressing the media after inaugurating a conference on ‘Privatisation with Public Private Partnership.’

He said that Pakistan would negotiate with the International Monetary Fund (IMF) on the power tariff issue as enhancing electricity charges would create problems for the government as well as for the people and added that if required, the government could even give a subsidy to mitigate the electricity problem for the people.

‘Pakistan and the IMF will be holding talks to discuss the budgetary measures of the government and the release of next tranche of loans to Pakistan,’ said Tarin.

The adviser added that the government has removed the Petroleum Development Levy in the Budget to make the petroleum prices transparent saying that fluctuation of oil prices in international market would have now direct impact on the domestic oil prices.

He was of the view that the collective surcharges on petroleum products in Pakistan were about 35 to 37 per cent against 44 per cent in developing countries and 64 per cent in developed countries.

‘The increase in oil prices would phenomenally increase inflation, however, if the government controls inflation this would result in the increase of fiscal deficit,’ said Tarin, adding that he was sure inflation would come down to a single digit by the end of this year.