With potential losses surging to Rs5.2 trillion, mainly in the power sector, the government has decided to introduce a single electrify tariff by eliminating tariff slabs and subsidy by July next year. It also calculated Rs0.5 trillion worth of loss in food and fertiliser and other potential losses amounting to Rs1 trillion. The government has decided to introduce a single tariff, which it believes will result in savings of Rs200 billion annually. Average tariff will enable the government to target and indemnify the subsidy size and remove cross-subsidies. Under the action plan, the government will remove the slabs and subsidies higher than the average charges will be distinctly identified on bills.

Source: The Express Tribune November 17, 2020 04:18 UTC