A senior official at Pakistan’s Finance Ministry has said the government will increase the power tariff by 15.6 per cent in 2011-12 in order to bridge the gap between costs and the tariff rate.

The power tariff will also reflect all actual line losses and fuel costs from 30 September, he added. Previously, line losses of 16.5 per cent were included in tariff determination, against actual losses of 19.5 per cent.

In addition, the Finance Ministry has proposed immediately increasing the power tariff by 6 per cent, with a further 4 per cent increase in October, December and February.

The Ministerial Committee on Energy is scheduled to brief the prime minister about its recommendations to resolve Pakistan’s endemic energy crisis. These proposals will then be forwarded to the Federal Cabinet for approval.

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