ISLAMABAD- Government is all set to drop electricity, gas bombshell on the people by raising the tariff of gas and electricityin January 2015 as part of pre-conditions imposed by IMF which will see an increase of 5.4 percent in electricity tariff and 30 percent in gas tariff byfrom January 2015.

An IMF report says that the government assured IMF in writing that electricity and gas tariff will be increased in January 2015, in a Memorandum of Economic and Financial Policies between IMF and Government, signed by Finance Minister Ishaq Dar and Governor State Bank Ashraf Withra.

The IMF-Government documents propose the increase of 5.34 percent with cost per unit going up by paisas 61. The raise will be billed under the head of surcharge to generate additional income of Rs 58 billion for the government, from February to bring down the circular debt.

Government also assured an increase in gas tariff from January by 30 percent to collectRs 78 billion from the consumers and accruesa total income of Rs 145 billion for the government.

The document also reveals that the deadline for privatization of 26 percent shares of PIA has been extended by one year and now the privatization will take place in December 2015 instead of by December2014. IESCO and LESCO will have to be privatized in October, 2015 while FESCO will have to be privatized in August, 2015.