ISLAMABAD - The beleaguered govt has decided in principle to increase the power tariff by four per cent in the first phase, as it has to further increase the tariff by some eight to 10 per cent during rest of the months (December-June) of the ongoing financial year 2011-2012. The Cabinet Committee, chaired by Prime Minister Syed Yousuf Raza Gilani, on Wednesday has in principle approved to increase the power tariff by four per cent in the first phase. However, notification in this regard would be issued later. Meanwhile, sources told that government would have to further increase the power tariff by eight to ten per cent during remaining period of the current fiscal year in order to reduce the power subsidy. The Cabinet Committee constituted by Prime Minister under the head of Finance Minister Abdul Hafeez Shaikh had recommended the government to raise the power tariff by some 12 to 14 per cent during the ongoing financial year in order to reduce the power subsidy. 'The government will have to pay additional subsidy worth of Rs 66 billion if it does not increase the power tariff during the current fiscal year, said a senior official of the Ministry wishing not to be named. This subsidy would be additional than allocated in the budget, he added. He further informed that it depends on the political leadership whether to further increase the power tariff or not but there is a dire need to increase it. Apart from reducing the power subsidy, the current power hike was essential before initiating discussions with Asian Development Bank and World Bank for getting $ 2 billion loan programme for power sector to Pakistan. However, Pakistan would also require clean chit for it (loan) from International Monetary Fund (IMF) regarding economic situation of the country during the ongoing talks in Dubai. The talks between Pakistan and IMF would end on Thursday (today), as it continued from November 9th under the Article IV where Islamabad seeks clean chit in terms of economic situation of the country.