Government will be increasing electricity prices by Rs. 7 per unit to meet the demands of International Monetary Fund (IMF).

According to sources privy to the matter, the hike of Rs. 7 in electricity price would include an increase in basic tariff and monthly fuel adjustment charges.

The hike in power tariff will be applicable from July 1.

Moreover, the IMF has also asked the government to immediately privatize the profitable electricity distribution companies.

Earlier on IMF’s conditions, government has increased the fuel prices. Following Rs. 30 per liter increase in price of petrol, the new price is Rs. 179.86.

It should be noted that the government is further planning to increase the fuel prices in the same ratio in next 15 days in a bid to achieve the IMF program.