The government began raising taxes and prices of commodities to secure loans from the International Monetary Fund, reports said
Dr. Akhtar Gulfam / DirectorNews, Dawn TV + Daily Dawn
London: A Bloomberg report has revealed that electricity bills in Pakistan have overtaken house rents in Pakistan.
According to Bloomberg, a news agency that monitors global financial affairs, Pakistan has seen a 155 percent increase in electricity prices from 2021.
Electricity bills overtook house rental rates in Pakistan.
Inflation has increased due to a hike in electricity tariffs and other reforms to comply with IMF loan conditions.
The report said that in Pakistan, where almost half of the population has a daily income of less than $4, inflation is about 12 percent. The increase in the prices of electricity, petrol and essential commodities further reduced the purchasing power of the citizens.
The report said the government increased the average unit price of electricity for residential consumers by 18 percent last month in July. The government started raising taxes and prices of commodities to get loans from the International Monetary Fund.
Bloomberg reports that Pakistan and the IMF have agreed to cut costs in the energy sector and privatize state-owned power distribution companies under a bailout program.
According to its power regulator, Pakistan loses about 16 percent of its electricity generation to transmission and distribution malfunctions, including theft, which increases the revolving debt.
