960415

15.8 pc raise in

energy rates: govt

agrees to WB demand

RECORDER REPORT

ISLAMABAD: The nation is likely to suffer another jolt in the forthcoming budget as Pakistan has pledged to meet the World Bank demand for 15.8 percent increase in the energy tariff, it was learnt on Monday.

The World Bank had sought this increase in tariff in the first month of the next year in order to meet the expenditure of Wapda, officials said.

During the discussion with the visiting World Bank Energy Mission, the Government of Pakistan assured the Bank that the energy tariff rates would be raised by 15.8 percent in the budget 1996-97. The nine-member World Bank power mission, which arrived here on April 9, and has met senior officials of the Ministry of Water and Power, Wapda, Privatisation Commission, Ministry of Finance, Central Board of Revenue and other concerned officials of the Government of Pakistan, will submit its report to the government prior to its departure.

It may be worth mentioning here that assistance from the World Bank for development projects will depend mainly upon the report of the visiting power mission. After the mission's final report, wrap-up meetings will decide whether to provide financing to the Government of Pakistan or not and this is expected to take some two weeks.

The mission, which will remain in the country till April 26, is focusing its deliberation mainly on Wapda's investment programme and financial situation, including the forecast for financial year 1997, besides environmental, resettlement and technical issues of the Ghazi Barotha Hydro-Power Project. At present the mission is in Lahore.

It may be recalled here that Wapda has already increased additional surcharge on all categories by 22 to 35 percent in July last. After it was unsuccessfully contested by the consumers at the Lahore High Court, the additional surcharge was adjusted in different slabs making an increase of Rs. 0.28 to 2.37 on 50 units and 4000 domestic units respectively.