Is government increasing power tariffs to fulfil IMF demand?

The news is circulating on social media that the government is mulling to increase the electricity prices to fulfil the demand tabled by International Monetary Fund (IMF).

According to the media reports, the government's aim to hike power tariff is to secure another long-term loan facility.

It was reported that the electricity tariffs might increase by up to Rs7 per unit on account of the annual base tariff adjustment.

However, the power division has refuted the claims, saying "No plan to increase the price is on the card".

In a statement, the authorities said that the government has not committed to Washington-based lender in this regard.

It added that the IMF expressed concerns over the increase in circular debt, which rose to Rs150 billion in the last quarter of the ongoing fiscal year.