Fear of public backlash forces govt to delay decision

ISLAMABAD Finance Ministry is forcing the government to fulfill its promise with International Monetary Fund to increase power tariff by 6 percent that was due this April but is still pending as the government is apprehending severe backlash from public, is reluctant to take the decision. According to reliable sources, the government is mulling various options for the adjustment of that amount which was to be gained by increasing the tariff by 6 per cent. Insiders confided with TheNation that Finance Ministry conducted several meetings during this month (May) involving the representatives of Ministry of Water and Power. In some meetings, Ministry of Finance demanded of the government to increase tariff from back date as per its promise with IMF and due to non-compliance of the government with its commitment, Finance Ministry was facing troubles in meetings with the IMF representatives. The govt has worked out 6 percent hike financial summing to Rs8 billion so it is presently struggling to obtain non-refundable budgetary support from two brotherly countries. At least, it is trying to obtain an amount that equals proposed 6 percent power tariff hike. It is further learnt that most of the expectations of the government are attached with United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) but at the moment, nothing is final, as these countries have made no commitment yet to provide any non-refundable monetary assistance to Pakistan. But the sources said that this time nothing can be told with clarity as what might happen. The sources said that the government at the moment was postponing this very hard decision considering that its political worth might decrease more rapidly. But Finance Ministry is on the other hand is forcing to take this lethal step and how long the government would be able to resist, cannot be predicted. It all depends whether or not, it succeeds in arranging some money to be adjusted in the energy sector.

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