Finance Minister Asad Umar announced on Thursday an increase of Rs1.27 per unit in the price of electricity, emphasizing that the decision was taken on the recommendation of the National Electric Power Regulatory Authority (Nepra).
Flanked by other government ministers, the finance minister was addressing the media after the conclusion of the federal cabinet meeting.
Umar clarified that Nepra had originally recommended a hike of Rs3.82 per unit, but the government raised the price by Rs1.27.
He went on to say that up to 70 per cent of consumers will not be affected by the rise in tariff and 15 to 20 per cent of consumers who consume more than 300 units will be affected by the increase.
The finance minister emphasized the need to increase exports and remittances to avoid returning to the International Monetary Fund (IMF) in the future.
Speaking to reporters, Federal Minister for Power Omar Ayub Khan said around Rs300 billion is lost in power theft which then contributes to circular debt.