International Monetary Fund (IMF) has expressed satisfaction at the current level of inter-Discos Tariff Differential Subsides (TDS) as allocation in the budget is in accordance with the allowed limit of the Fund. An official told Business Recorder that the government has earmarked Rs 120 billion for TDS in the federal budget 2018-19 which is 0.3 per cent of total GDP- a limit already agreed with the Fund.

According to the official, the government has already phased out power subsidy and only domestic consumers who use upto 300 units are given a subsidy, particularly those who consume 100 units per month considered as lifeline consumers.

Presently, the scheduled tariff based on tariff rationalisation subsidy/surcharge applies the same rate to each category of consumer while maintaining the national average at Rs 12.92 per unit inclusive of a subsidy of Rs 1.19 per unit, the official said, adding that in order to recover the additional determined revenue requirement of Rs 396 billion the national average must be maintained at Rs 15.53 per unit.

In reply to a question, the official stated that the IMF Mission has not yet indicated any conditions for the new program as they are still holding consultations with the Ministries and departments.

Copyright Business Recorder, 2018