ISLAMABAD: Prime Minister Shehbaz Sharif said that the recent increase in power tariff would not affect consumers using up to 200 units per month.
He made this announcement during a ceremony in Lahore where Pakistan LNG Limited and Azeri company Socar signed a framework agreement for liquefied natural gas (LNG).
The federal cabinet had approved the request from the power regulator to raise the national average tariff, resulting in some residential consumers paying up to Rs7.50 more per unit. The decision was conveyed to the National Electric Power Regulatory Authority (Nepra), which scheduled a public hearing to implement the hike retrospectively from July 1 for all power distribution companies (Discos) and the private utility K-Electric.
The increase in power tariff was a condition of Pakistan’s agreement with the International Monetary Fund (IMF). However, the Prime Minister emphasized that he ensured the increase would not burden the poor. As a result, 63% of domestic consumers, categorized as lifeline consumers and protected segments, will not be impacted. And there will be a “partial subsidy” for those using up to 300 units per month, which accounts for 31% of total domestic consumers.
Regarding the LNG deal, Prime Minister Shehbaz shared that Pakistan and Azerbaijan signed an agreement for the procurement of LNG from Socar. The deal has a one-year term, extendable for another year. During which Socar will offer Pakistan one LNG cargo each month. Pakistan has the freedom to decide whether to buy the cargo or not, with no penalty if they choose not to purchase.
The Prime Minister thanked Azerbaijan President Ilham Aliyev for fostering economic relations between the two countries. To promote tourism and investment, the Azeri airline has been approved to operate flights to Islamabad, Lahore, and Karachi.
Under the framework agreement, Socar will supply LNG to Pakistan in the form of one cargo per month, offering flexible terms and credit lines for 30 days after cargo delivery.
