No hike in tariff until outages end

ISLAMABAD (APP) - Advisor to Prime Minister on Finance, Shaukat Tarin, has said that the government would not increase electricity tariff until the loadshedding problems is resolved.
It would not be logical to enhance electricity rates at a time when people are facing the loadshedding problems, he said while talking to newsmen after inaugurating a conference Privatisation with Public Private Partnership here on Friday.
He said that Pakistan would be negotiating with International Monetary Fund (IMF) on the power tariff issue as it would create problems for the government as well as for people to enhance electricity charges. He added that if required, the government could even give subsidy from its own pocket to mitigate the problems of people.
Tarin said that Pakistan and IMF would be holding talks to discuss the budgetary measures of the government and the release of next tranche of loans to Pakistan. He further said that there had been 10 percent decrease in overall gas prices adding that the industry was provided 11.75 percent reduction where as the domestic consumers were provided about 2 percent reduction in prices.
The Advisor said that the government has removed the Petroleum Development Levy in the budget to make the prices transparent saying that fluctuation of oil prices in international market would have now direct impact on the domestic oil prices.
He was of the view that the collective surcharges on petroleum products in Pakistan were about 35 to 37 percent against 44 percent in developing and 64 percent in developed countries.
Tarin said that increase in oil prices would phenomenally increase inflation, however, adding that if the government controls inflation this would result in increase of fiscal deficit. He, however, was sure that the inflation would come down to single digit (9.5 percent) by the end of this year.
To a question, he said that the Friends of Pakistan have pledged the govt of their assistance and in addition there are commitments of assistance for IDPs. He expressed the hope that the Friend of Pakistan would honour their pledges and make timely payments.
About the revenue collection, Shaukat Tarin said that according to the provisional figures, the Federal Board of Revenues has so far collected Rs. 1,150 billion which is expected to touch the figures of Rs. 1.170 billion, just 9 billion short of the set target of Rs. 1,179 billion.
He said that by introducing tax reforms and consultations with taxpayers, the FBR would make the tax system more vibrant to enhance tax collections adding that the board would encourage taxpayer-friendly culture. Tarin further said the government would remove all the circular deficits by August 15.