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Consumers to bear burden as govt proposes new power surcharge

14 26
09.03.2025

ISLAMABAD: At the conclusion of technical talks with the International Monetary Fund (IMF), Pakistan has proposed no additional taxation measures, opting instead to recover additional revenues through legal and administrative means.

However, the government presented a contradictory stance on electricity pricing, seeking both relief on general sales tax (GST) on electricity and approval for an additional financial surcharge on power bills.

Formal policy-level talks are set to begin on Monday (March 10), where an IMF staff mission led by Nathan Porter will formally speak its mind on the revenue aspect. Sources said the Fund’s staff opposed outright the authorities’ proposal to abolish or reduce general sales tax on electricity to reduce costs.

Conversely, however, the government’s side also proposed about Rs2.83 per unit additional financial surcharge on electricity for the next five years to finance about Rs1.2 trillion loan it has arranged to clear a part of power sector circular debt besides other book adjustments. This arrangement was welcomed by the IMF.

Govt promises no new taxes, but IMF seeks stronger compliance

This means that........

© Dawn Business