ISLAMABAD - The government and the World Bank on Tuesday went through technical session of the ongoing three-day talks crucial for enabling release of third tranche of the IMF loan and neared agreement on gradual increase in electricity tariffs. According to a senior official of the Finance Ministry, the Ministry has explained to the World Bank that it would finance the subsidy on electricity prices from the public sector development programme up to Rs 50 billion. The additional amount of subsidy during the current financial year would be met from the recovery of outstanding receivables of the Water and Power Development Authority, the official said requesting anonymity. The World Bank officials, besides the experts of the Asian Development Bank, would hammer out on Wednesday, the last day of the talks, with the government the way to cut the Public Sector Development Programme without impacting the development as such, the official added. The official told The Nation that the government had convinced both the World Bank and the ADB to take the state of power crisis into account while asking for increasing the power tariff. According to the official, the government and the financial institutions have almost agreed on 22 per cent total increase required in the power tariff over the ongoing financial year. Since the government pleaded to increase the power tariff in phases, the World Bank and the ADB official would give their final nod on Wednesday to the increase of five to seven per cent in the first phase effective from July 1, 2009, the official maintained.