PML-N leaders, who promised prosperity and progress as part of its election manifesto, on Monday approved yet another hike in electricity tariff, jacking up power prices by Rs 5.89 per unit.
The hike would be applicable to people consuming 201-300 units of electricity, while those consuming 301-700 units of electricity would be subjected to a raise of Rs 3.67 per unit.
Following the hike, those consuming 201 to 300 units will have to pay Rs 14 per unit instead of the earlier Rs 8.11.
Similarly, consumers using 301 to 700 units will be paying Rs 16 per unit instead of Rs 12.33.
The increase in electricity tariff is one of the requirements of the loan deal the government struck with the IMF recently.
The electricity tariff for the agriculture sector was also earlier increased and the subsidy for the sector was cut. This was done as a requirement for the initial reimbursement of the loan given by the IMF.
There was also a sudden increase in electricity tariff for the textile industry.
The increase in electricity tariff is expected to affect economic growth, as power consumption makes up a large part of the basket of items used to calculate inflation.
The central bank, by raising the interest rate, has already taken a step which is expected to have a higher inflationary pressure in the coming months.
Authorities concerned have issued a notification for the power tariff hike.