Adding further strain to already burdened power consumers, the National Electric Power Regulatory Authority (NEPRA) has approved a tariff increase of Rs1.71 per unit.
According to the notification issued, this increase in electricity tariff falls under fuel adjustment charges (FAC) for the month of August. Consumers will see the adjusted tariff reflected in their bills in October. Notably, this tariff hike will not affect Lifeline and K Electric customers.
Furthermore, on October 3, the National Electric Power Regulatory Authority (NEPRA) approved another increase in the electricity price of Rs3.28 per unit as part of the quarterly adjustment.
According to NEPRA’s notification, a rate of Rs3.28 per kilowatt-hour (kWh) will be collected from various consumer categories of power distribution companies (DISCOs) and K-Electric over a period of six months, spanning from October 2023 to March 2024.
Central Government Debt Surges To Rs63.97 Trillion In August 2023
Meanwhile, the central government’s total debt has seen a significant increase of 29.04% year-on-year (YoY) to reach Rs63.97 trillion in August 2023, compared to Rs49.57 trillion in August 2022, as per data released by the State Bank of Pakistan (SBP).
On a month-on-month (MoM) basis, the government’s debt grew by 3.59%, rising from Rs61.75 trillion in July 2023.
The substantial increase in the debt burden mainly results from borrowing from both domestic and foreign sources to cover the fiscal deficit.
SBP provided debt figures indicating that domestically accumulated debt amounted to Rs39.79 trillion and experienced a YoY growth of 23.76%. This domestic debt includes Rs30 trillion in long-term debt and Rs9.63 trillion in short-term debt. The remaining Rs24.17 trillion is external debt.
By the end of August 2023, the government’s long-term debt had risen by 22.19% YoY to reach Rs30 trillion, compared to Rs24.56 trillion recorded in the same period the previous year. Similarly, short-term debt experienced a YoY increase of 28.71%, reaching Rs9.63 trillion, up from Rs7.48 trillion in August 2022.
Within the category of long-term domestic debt, Pakistan Investment Bonds (PIBs) accounted for Rs22.09 trillion, reflecting a YoY increase of 22.26%. In the short-term domestic debt category, Market Treasury Bills (MTBs) amounted to Rs9.56 trillion, showing a YoY increase of 28.69%.
Furthermore, borrowing through Naya Pakistan Certificates witnessed substantial YoY growth of 36.79%, reaching Rs145.5 billion in August 2023.
A closer look at the central government’s external debt reveals that nearly Rs24.11 trillion came from long-term loans, while Rs69 billion came from short-term loans.
