- Mifuta says the manager is not responsible for the skyrocketing electricity bills.
- The government could remove the sales tax from electricity bills, he said.
- He is calling on political leaders to come up with strategies to collect taxes from the wealthy.
In response to nationwide protests against rising electricity prices, former Finance Minister Mikhta Ismail said on Thursday that the International Monetary Fund (IMF) had agreed with the International Monetary Fund (IMF) before the caretaker government gave relief to consumers using 200-300 units of electricity. announced that it would be necessary to obtain permission from per month.
Pakistan and the IMF agreed on June 30 long-awaited staff levels for a $3 billion Standby Agreement (SBA) after the cash-strapped country agreed to “harsh” terms introduced by global financial institutions. An agreement (SLA) has been reached.
talk on the way geography news Mikhta said the ‘Naya Pakistan’ program would allow the caretaker government to reduce the tax burden for domestic consumers who use up to 300 units of electricity.
“The IMF will agree on the bill issue if the government humbly talks with the fund.”
“When I was finance minister, I was instructed by Shebaz Sharif not to raise electricity prices for people with up to 200 units,” Mifta recalled.
The former finance minister discussed the issue with the IMF and then claimed that the international financial institutions had approved his request.
He said electricity prices in the country had reached record levels, adding that the government could remove sales tax from electricity bills but would need to meet tax collection targets.
“If the consumption tax is removed from electricity bills, where will the tax come from?”
If the government avoids imposing excise tax on the property, agriculture and service sectors, it will shift the excise tax to the poor, which it does, the former minister said.
He called on leaders of all political parties to devise strategies to collect taxes from the rich, adding that taxes are not just for the poor.
“Contracts signed in 1994 and 2002 have expired, so new contracts should be signed to produce cheaper electricity,” he suggested. The former finance minister also proposed privatization of all distribution companies (discos) in the country.
In response to a separate question, the former finance minister made it clear that the custodians were not responsible for the high electricity bill. He argued that consumers are paying the price for power theft and rising circular debt.
Prime Minister Calls Meeting
Earlier today, Caretaker Prime Minister Anwar-ul-Hak Kakar called for an emergency meeting to be held at the prime minister’s office on Sunday to discuss the issue of electricity price hikes.
According to a post by the Prime Minister on microblogging platform X (formally known as Twitter), the meeting will include briefings from the Ministry of Energy (Bureau of Power) and distribution companies.
Talks will also be held to provide maximum relief to consumers on electricity bills, Kakaar said.
In Karachi, Jamaat-e-Islami (JI) has held demonstrations at several locations against rising electricity prices and overcharging of some of K-Electric (KE).
Meanwhile, in Rawalpindi, protesters gathered at the Chalk Committee to burn banknotes while demanding the government abolish taxes on electricity.
In Peshawar, protesters said the price hike was intolerable and demanded a bailout from the government.
In Gujranwala, protesters surrounded the offices of the Gujranwala Electricity Company to protest the high cost of electricity.
Other cities such as Narowal, Attuk, Sargoda and Haripur also held protests against high electricity prices.
In July, the Federal Cabinet at that time gave the go-ahead to substantially raise the basic electricity rate to a maximum of 7.50 rupees per vehicle, compared to the nationwide average rate of 4.96 rupees determined by the National Electricity Regulatory Authority, the power regulator. (Nepura).
Regulators had raised tariffs during the year to collect more from loss-making distribution companies (Disco).
According to Nepra’s statement, the revised national average tariff for fiscal year 2023-24 was determined at Rs 29.78 per unit kWh, which is Rs 4.96 per unit higher than the previously determined national average tariff of Rs 24.82.
Regulators have cited the devaluation of the rupee, high inflation and interest rates, the addition of new production capacity, and low overall sales growth as reasons for the price hikes, but in reality the rupee price hike has been linked to international economic growth. It was done to meet one of the conditions for the introduction of fiscal structural reforms set by the Monetary Fund (IMF). energy sector.
