Even as Pakistan reels under utter poverty, electricity becomes dearer per IMF diktat

Islamabad: In Pakistan, temperature is hovering around 30 degree Celsius. Despite forecast of an extremely hot summer, several people in this cash-strapped south Asian nation may be forced to give up their electricity connections as the Shehbaz Sharif-led government imposed another PKR 3.82 per unit surcharge on consumers. The National Electric Power Regulatory Authority (Nepra) announced the Pakistan government ’s decision on imposing surcharge on electricity consumers across the country for four months starting 1 March. Additional surcharge The Shehbaz Sharif government has announced an additional surcharge surrendering to another demand of the International Monetary Fund (IMF) to finance the power sector’s debt and liabilities and steadily reduce debt that stood at PKR 2.6 trillion by end of December 2022. The Pakistan government has already burdened consumers who are paying 43 paise per unit surcharge. The increased price will be applicable to K-Electric consumers. Also Read: Pakistan’s elite in trouble amid bankruptcy as IMF tells Shehbaz Sharif govt to tax only the rich As per the notification, the government will also charge 43 paise per unit surcharge on agricultural and residential consumers using up to 300 units. All other consumer categories including commercial, industrial, general services, bulk and others in the domestic sector above 300 units would be charged PKR3.82 per unit surcharge. The total impact of surcharge in 2023-24 would thus, stand at PKR335 billion, the notification stated. Luxury goods become unaffordable To fulfill another condition set by the IMF, the Shehbaz Sharif -led Cabinet has approved imposition of 25 per cent sales tax on luxury items. The 25 per cent GST has been imposed on aerated water and juices, imported cars, mobile phones, cat and dog food, sanitary and bathroom wares, carpets, chandeliers. Must Read: Medicines beyond reach, falling ill is death sentence, say poor in bankrupt Pakistan GST has also been imposed on lighting devices or equipment, chocolates, cigarettes, confectionary items, corn flakes, cosmetics, shaving items, tissue papers, crockery, decoration/ornamental devices, doors and window frames, fish, footwear, fruits and dry fruits, furniture, homes appliances, luxury leather jackets and apparels, mattress and sleeping bags, frozen or processed meat, mobile phone, musical instruments, arms and ammunition, shampoos, sun glasses, tomato ketchup and sauces, travelling bags and suitcases. Also GST of 25 per cent has been imposed on locally manufactured luxury vehicles of 1,400cc and above. The Federal Board of Revenue (FBR) has estimated that it will collect PKR 15 billion in additional taxes through the enhanced GST rate of 25 per cent in the four-month period. Reports say that on Monday, Pakistan and IMF held virtual negotiations for revival of loan program that has been stalled for months. Don’t Miss: Soaring food prices in bankrupt Pakistan push inflation to record high During the meeting, the global lender expressed satisfaction over the measures taken by the country, while Pakistan insisted for early finalisation of the staff-level agreement. The IMF had asked Pakistan to implement several demands before reaching a staff-level agreement for the revival of the $7 billion Extended Fund Facility (EFF). Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.