The consumers in Agriculture would be charged a flat rate of Rs5.35 per unit during the peak and off-peak hours throughout the country for consecutive three months, the power division has decided.
Agriculture consumers in Panjab previously requested the government to keep the tariff of agriculture sector the same as they cannot afford the higher tariffs. They further said the peak hour’s rate of Rs.10.35 if charged, the agriculture output would be affected, it would not affect the consumers individually but also the country as a whole.
Two months earlier in April, Pakistan Kissan Etihad (PKI) an organization representing farmers in Pakistan organized a protest in the capital, the objective of the protest was to demand relief measures for agriculture sector and announced incentives in federal budget, the government eventually announced some incentives but overlooked the major problem of electricity tariff for agriculture consumers.
The previous PMLN government took this proposal before the federal cabinet on May 31, 2018, where it was approved for a flat rate for all agriculture consumers. The federal cabinet decided to charge a flat rate of Rs.5.35 per unit for 3 months from June to August 2018.
The cabinet also decided that the difference arising from this subsidy would be paid by the government of Pakistan. However, it was not revealed how much the government has to bear in terms of subsidy, the sources claim it would be in billions as the agriculture sector in Punjab consumer’s lot of electricity, Tube Wells, and machinery run 18 to 20 hours a day.
The decision was welcomed by the PKI as it would not only make farmers happy but also it would increase the corps output, may also help to increase Pakistan’s agriculture exports