Pakistan is to pass the burden of rising prices onto consumers from July...
Pakistan is to pass the burden of rising prices onto consumers from July 1, the start of fiscal 2008-09, and will end power sector subsidies by the end of June 2009, it was reported Tuesday.
On power tariff, the summary said the government had been permitting automatic monthly determination based on fuel adjustment surcharge. This surcharge would now be determined in accordance with fluctuations in international oil prices.
The World Bank and other agencies are known to be pressurising Pakistan to do away with subsidies on petroleum products.
The summary says that amendments would be made to permit the imposition of additional fuel surcharge or other levies on electricity consumption to eliminate the power sector subsidy by end of fiscal 2008-09.
The summary also shows that based on the average international price of petroleum products in May, the government is paying a per litre subsidy of Rs.44.11 on kerosene oil, Rs.37.07 on high speed diesel, Rs.33.65 on light diesel oil and Rs.7.15 on motor spirit.
