Staff Report
ISLAMABAD: In an attempt to fulfill the International Monetary Fund (IMF) conditions to unlock a loan package, the federal government on Wednesday suspended the electricity subsidy for farmers, announced under the Kissan Package last year, and hiked the power rates for farmers by PKR 3.60.
Farmers, the backbone of the country’s agricultural economy, will now have to pay PKR 16.60 per unit instead of the previous PKR 13.60.
The PKR 3.60 subsidy announced for farmers under a specialized package has been withdrawn.
The federal government took this step to generate taxes worth PKR 14 billion from the electricity price hike.
The Power Division has written a letter to all electricity distribution companies, including K-Electric.
A copy of the notification has also been issued to the Finance Ministry and National Food Security Ministry to implement the new order.
Power subsidy for farmers
Last year in November, the Economic Coordination Committee (ECC) of the federal cabinet approved the PKR 1.8 trillion Kissan Package announced by Prime Minister Shehbaz Sharif the month before.
The package was approved as proposed in summary, including enhancement of agriculture loan disbursement from PKR 1.419 trillion to PKR 1.802 trillion, reduction in DAP price to PKR 11,250 per bag from PKR 13,750 (subsidy of PKR 2,500), and interest-free loans to convert 300,000 tube wells to solar power.
Following the ECC approval, the National Electric Power Regulatory Authority (NEPRA) notified a power tariff cut by PKR 3.60 per kWh as per the Kissan Package in December last year.
