ISLAMABAD: Federal Minister for Economic Affairs Hammad Azhar in a series of tweets Thursday said the total sum of subsidy for power and gas that is to be passed on to these sectors shall be capped at Rs20 billion during the next fiscal year.
“For the next fin year (2020-21), the total sum of subsidy (incl cross subsidy and/or allocation) combined for power & gas that is to be passed on to these sectors shall be capped at Rs 20 BN and the resultant tariffs shall be notified accordingly,” he tweeted.
He furthr said: “Govt has been providing base power tariff of 7.5 cents to export oriented sectors since Jan 2019. It will continue to do so till June 2020 and will also absorb add-ons on top of this base tariff (excl taxes) from Jan 2019 till June 2020.”
His tweets came in the wake of a statement by the International Monetary Fund (IMF) in which it announced reaching a staff-level agreement with the Pakistani authorities on the second review of Pakistan’s Economic Program under the Extended Fund Facility.
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